Aug 2018


How will PAYE Modernisation impact on your payroll?

In late 2016, Revenue issued a consultation document outlining their vision for the introduction of Real Time Reporting (RTR) or PAYE Modernisation in Ireland.

This will modernise the Pay As You Earn (PAYE) system, and mean that employers will be required to report pay, tax and other deductions, as well as details of employees leaving the organisation, at the same time as they run their payroll.

The new obligations for employers are due to take effect from 1 January, 2019, meaning businesses have a limited amount of time to prepare their payroll systems to be compliant with the new RTR / PAYE Modernisation rules.

Do you use payroll software? If so, there are two methods of reporting payroll in real time:

  • Direct Payroll Reporting - allows your payroll software to communicate seamlessly with Revenue Online System (ROS) and exchange the required information.
  • ROS Payroll Reporting - you can upload files created by your payroll software to ROS.

Payroll software companies have been working with Revenue to ensure that the software will be compatible with Revenue’s requirements. We would advise that you use payroll software, but if you don’t, you will be able to retrieve Revenue Payroll Notifications and complete a form through ROS. This reporting process will eliminate the need to file:

  • P30
  • P35
  • P45
  • P46


You will no longer be obliged to produce a P60 for your employees. Revenue will produce an end of year statement for all employees.

Information you will report to Revenue

You must provide Revenue with payroll information for each employee, including:

  • Payment date
  • Amount of pay 
  • Amount of Income Tax, Universal Social Charge (USC) and Local Property Tax deducted.

Upcoming free online webinars:

PAYE Modernisation for Employers - Understanding and implementing the new legislation

PAYE Modernisation for Payroll Bureaus - Understanding and implementing the new legislation for your clients


Related Articles:

PAYE Modernisation: How successful was it in the UK?
PAYE Modernisation - List of Employees
PAYE Modernisation - The Facts
PAYE Modernisation - Understand how your payroll processing will change


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Posted byHolly McHughinPAYE Modernisation