Warning! Changes & Challenges Ahead for Payroll
There are many changes happening now and in the next 2 years 2018 and 2019 that all Employers need to familiarise themselves with in relation to the processing of payroll and dealing with employee information. We advise that you read the following so that you can be prepared for the challenges ahead.
These are the biggest changes that have been seen in relation to payroll processing for a long time and it is imperative that you understand your role in implementing these changes.
PAYE Modernisation
The Revenue Commissioners are proposing a move of PAYE reporting from the current yearly basis to a real time basis from the 1st January 2019. This will be a big change for employers and employees and will bring significant challenges to Employers.
The objective of PAYE Modernisation is that Revenue, employers and employees will have the most up to date information available to them to ensure that the employees are paying the correct amount of tax each pay period.
For employers the introduction of real time reporting will necessitate changes in their current payroll practices which are based on an end of year reporting obligation. Employers will now need to focus on the quality and accuracy of the information that will be provided to Revenue on each pay day. Employees will have access to their tax records online and will be aware of all details that the employers report to Revenue in Real Time on their behalf.
If this is not accurate it may lead to unwanted queries from employees and increased administration time to resolve the issues. All employees will need to register their new job with Revenue as soon as they commence employment and should be instructed to do so in their induction meeting.
Employers should look at their current processes and take steps over the next year to introduce the changes required and ensure that the transition is as painless as possible.
For further information on PAYE Modernisation, please contact our team.