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Payroll Procedures and PAYE Modernisation

Payroll Procedures for 2019 Tax Year and PAYE Modernisation

From the 1st January 2019 Revenue are changing the way they will accept payroll returns and tax payments.

Companies will need to review their business processes and practices, so they meet the new requirements. You must ensure that you:

  • Have registered all of your employees (Directors) with Revenue
  • Create and register an online account with Revenue. Revenue requires everyone to set up an online Revenue account. If you do not have an online Revenue account, you must register one before January 2019. Simply follow the link here: Register
  • Checked that you have the correct PPS number for all employees
  • Operate the Revenue deduction instructions for each employee
  • Have complete payroll data which is accurate and up to date
  • Have all required information on employee pay on a timely basis and in the correct format to payroll
  • Ensure that you have procedures in place to meet your reporting obligations.

If you pay yourself monthly from your company, you must pay and file tax to Revenue on a monthly or quarterly basis.

Going Forward

We suggest that we provide everyone with a payslip based on their invoice and expenses. Revenue will provide us with a monthly statement based on our monthly payroll submissions, by the 5th day of the following month. The monthly statement will show a summary of the total liability, and a breakdown of your liability for Income Tax, USC, PRSI and LPT.

The monthly statement will be deemed as your return if no amendments or corrections are made to the underlying payroll submissions, before the return due date, which is the 14th of the following month.

Quarterly remitters will have a monthly statement issued by Revenue which becomes their monthly return. Your payment due date will remain the same.

With this in mind, we suggest that everyone submits a timesheet/invoice and expenses by the last working day of the month so that we can process payslips for you. If we do not provide payslips for you at present, then we should do so from January onwards.

Forms P45, P46, P35 and P60 abolished

These forms will all be abolished in 2019. Instead, all of the functions normally associated with these forms will be accommodated by the payroll program. In our case, we use Thesaurus. This program has been deemed compliant for reporting purposes by Revenue.

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