Feb 2020
25
Goodbye P60s, hello the future of PAYE!
As we all know, the Revenue Commissioners has spent the past two years preparing what has been hailed the most substantial reform of the Pay As You Earn (PAYE) system since its introduction way back when in 1960. This process has been coined ‘PAYE Modernisation’ and is exactly what it says on the tin as it is has allowed Ireland's PAYE system to adapt to modern working patterns and modern problems.
This has meant that since January 1st 2019, employers have been reporting employees’ pay and statutory deductions to Revenue in real-time, aka every time they have been paid. But where are we now? How is PAYE Modernisation doing?
PAYE Modernisation so far has been a success with a reported uptake of 90% of all employees whose payroll information has been submitted to Revenue. No, that wasn’t a typo - that’s 90%!!
This massive success has meant that PAYE Modernisation is working exactly how it was supposed to and has enabled Revenue to provide extended online services to taxpayers. It also means that a lot of the paperwork associated with income tax is no more. Yes, that’s right, P45s and P60s are now a thing of the past! Now that deductions and tax information are reported in real-time there's simply no need for them. Instead of P60s, employees are instead issued with an Employment Detail Summary which contains your income and deduction details for the year, as reported to Revenue by your employer.
So this next bit is for the remaining 10%, those of you out there who are clinging onto the old ways. Maybe you're even *gulp* manually processing your payroll *shudders*. There is no need to put yourself through processing payroll for your employees manually, especially when there is such an amazing product knocking about like Thesaurus Payroll Manager.
By using Thesaurus Payroll Manager, you will save so much time by streamlining your payroll processing and real-time reporting. If you’re still using a manual system then this software will be a complete game-changer. It is even integrated with Revenue’s API which allows the software and Revenue to talk to each other so that users can seamlessly submit Payroll Submission Requests in seconds.
With the threat of fines for non-compliance would you risk it for a biscuit? Have a slice of cake instead and download Thesaurus Payroll Manager today - you might even get to eat it too.
Oct 2019
3
Free Webinar: One year later... Can PAYE Modernisation be considered a triumph?
Join Thesaurus Software’s Paul Byrne as he takes you through the PAYE Modernisation journey so far, and decides whether or not PAYE Modernisation has been a success. During the webinar, Paul will also review some of the most common mistakes employers have made to date and what employers should expect in 2020.
As part of this webinar, we’ll take a closer look at Connect and how important it is to backup your payroll data for PAYE Modernisation. Ian Jenkinson will take you on a whistle-stop tour revealing the hidden benefits of our self-service employee app and explain how Connect’s cloud platforms can improve your payroll processes.
We are delighted to be joined by our guest speaker Sinead Sweeney, who is the PAYE Modernisation Change Manager at Revenue. Sinead will discuss what has happened since PAYE Modernisation has gone live and what challenges businesses are facing.
The webinar is CPD accredited for accountants and payroll bureaus. The webinar is free to attend and takes place on 23rd October at 11.00 am for payroll bureaus and 24th October at 11.00 am for employers. Limited places available - book your place now to avoid disappointment.
Can’t make it? Register for the webinar anyway and we will send you the on-demand recording when it’s ready.
More upcoming webinars
Thesaurus Software is hosting a number of webinars over the coming months. More upcoming webinars include:
Jun 2019
25
PAYE Modernisation: The good, the bad and the ugly
Latest Revenue figures for PAYE Modernisation show that 161,000 employers have successfully submitted over 2 million payroll submissions in respect of over 2.6 million employees.
Although the new system has proved very successful overall, the first four months of the new real time payroll reporting system also faced some recurring issues with payroll submissions. Here are the 10 most common errors seen by Revenue:
- Employers mistakenly sending the payroll data to Revenue more than once.
- Employers incorrectly creating duplicate employments for the same employee.
- Payroll submissions, or parts of payroll submissions, failing the validation process.
- Employers ceasing employment for employees in error by incorrectly including cessation dates in payroll submissions.
- Employers failing to apply the most up-to-date Revenue Payroll Notification (RPN) when running payroll.
- Employees being taxed on the emergency tax basis where an RPN is available.
- Incorrect operation of emergency tax e.g. employee reported with emergency tax, but no tax deducted by the employer.
- ‘Gross Pay’ shown as less than ‘Pay for Income Tax’ and/or ‘Pay for USC’.
- No USC deducted where the employee is not USC exempt, and similarly, USC deducted where the employee is USC exempt.
- Employers paying their tax liability twice in error e.g. by setting up both a ROS Debit Instruction and Variable Direct Debit for the same payment period.
Where errors arise, employers should immediately rectify them to ensure that they are not included in future payrolls. Early action also reduces the possibility of a Revenue intervention. Revenue will continue to assist any employer who is experiencing genuine difficulty in complying with the new PAYE requirements. However, it is important to remember that employers who fail to engage with Revenue or who persistently breach the PAYE Regulations are liable to a €4,000 penalty per offence.
It is in every employer’s interest to ensure that the data submitted to Revenue is accurate and in line with the employee’s payslip record, especially now that employees have access to their pay and tax details through their myAccount. Any discrepancies between payroll details on an employee’s payslip and those reported to Revenue could result in employees seeking clarification from their employer.
May 2019
21
PAYE Modernisation Update: Payroll and tax details now available to employees in myAccount
PAYE Modernisation is now in full force with the majority of employers having seamlessly transitioned to the new reporting system. From January until the end of April this year, some 161,000 employers have successfully submitted over 2 million payroll submissions in respect of over 2.6 million employees.
With real time reporting now in place for employers, Revenue has turned their focus to the benefits of this new system for employees. Since the 15th of May, all employees can now view their payroll details, as reported by their employer, through their myAccount. Further improved services through myAccount will also follow later in the year.
Employers should be aware that employees can now view any discrepancies between payroll details on an employee’s payslip and those reported to Revenue. It is therefore very much in every employer’s interest to ensure that the data submitted to Revenue is accurate and in line with the employee’s payslip record.
For more information about employee pay and tax details in myAccount, visit Revenue’s new PAYE Modernisation for Employees helpguide.
Feb 2019
5
How to avoid PAYE Modernisation mistakes
PAYE Modernisation is now fully operational and has brought many changes to the payroll process. Overall, it brings many benefits to all stakeholders involved - employers, employees and Revenue.
It is important that employers are aware of and understand their new real time reporting obligations. Revenue has strongly advised employers to review their payroll processes and systems to ensure that they meet the new PAYE Modernisation requirements.
Employers need to be aware that mistakes can be very costly. An employer is responsible for deducting the tax and paying over the liability to Revenue, and so non-compliance will result in interest to be paid by the employer. Employers who fail to comply can expect Revenue intervention with non-compliance penalties and fines.
The current penalty regime includes a fixed penalty of €4,000 for each breach of the PAYE legislation. It also includes a fixed penalty of €3,000 imposed on the company secretary for each breach. These penalties can be imposed on a per-item basis, so if you are even a mid-sized employer, these penalties can build up.
Download our free eBook for employers - Surviving PAYE Modernisation. In this guide, we discuss the key changes with PAYE Modernisation and what employers need to do to avoid non-compliance penalties from Revenue.
Interested in finding out more about PAYE Modernisation? Thesaurus Software and Revenue have teamed up for a new series of free PAYE Modernisation webinars. During the webinars, we will look at what has happened since PAYE Modernisation has gone live and what challenges businesses are facing.
Click here to book your place on one of our upcoming webinars.
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Feb 2019
1
ROS digital certificates - why you need one ASAP
Fun fact: Ireland is considered 1st in the EU when it comes to paying taxes!! Yes, I was just as shocked as you are! 1st in the EU at talking the ear off you and definitely 1st in the world at having the almighty craic, but paying taxes? Gosh not only are we funny and friendly, we’re honest and hardworking too! We’re so into our taxes and payroll that we are completely revolutionizing the way PAYE is reported to Revenue starting in the new year. When I say ‘we’, I mean it was the Irish government.
Yes that’s right folks I’m talking about PAYE Modernisation, the biggest (and best) change to PAYE since its introduction back in 1960. While, not everyone will agree, PAYE Modernisation will most definitely be a good thing for employers and employees. But today I want to talk about a very important certificate.
What are digital certificates? Revenue uses “digital certs” to allow business customers to electronically access their Revenue Online account and “sign and submit” their returns via the electronic channel (ROS). Essentially the process of electronically “signing and submitting” acts in lieu of a legal signature and ensures that the transactions and communications between business customers and Revenue cannot be repudiated at a later stage. It is also required by agents who wish to access online services for their clients.
Not only is this quite nifty, it is super secure. We're talking pinky promise between two grown men secure, that the information is locked down! And this security has been credited with the success of the digital certificates, and is possibly one of the key factors contributing to us paying our taxes so well.
But Aoibheann, digital certs have been around for ages, why the sudden interest? What else is going to make a comeback, bootleg jeans? Well digital certs are now a hot topic thanks to the introduction of PAYE Modernisation which came into effect on January 1st 2019. I’ve talked before about how you should be using payroll software in order to utilise it effectively, but equally as important is downloading your ROS digital certificate. Without this digital cert the PAYE Modernisation features in your software won’t work. You need to be able to access the ROS servers directly from your payroll software and likewise for the payroll information to be able to upload seamlessly to ROS from your computer.
The digital cert may sound scary but Thesaurus Software have put together a step by step guide on how to save and reload your digital certificates. It’s so simple, you wouldn't even need to get one of your grandkids to it for you.
Well, what are you waiting for? Get moving! So you can focus on real issues, like what to wear to bingo on Thursday.
Written by Aoibheann Byrne | BrightPay & Thesaurus Payroll
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Jan 2019
28
PAYE Modernisation is now live - but how do I comply?
By now, all employers in Ireland should know about Revenue’s new PAYE Modernisation legislation. This system came into effect on January 1st 2019 and brought with it a new and improved method of reporting PAYE information to Revenue.
PAYE Modernisation has brought many changes to the payroll process. With the new system, employers are required to send real time payroll submissions to Revenue containing details of their employees’ PAYE information. These submissions must be sent to Revenue on or before the date an employee is paid every pay period. In most cases, this means a file will be submitted either weekly or monthly.
What happens if I don’t comply?
Non-compliant employers can expect Revenue intervention with non-compliance penalties and fines. An employer is responsible for deducting the tax and paying over the liability to Revenue and so non-compliance will result in interest to be paid by the employer.
The current penalty regime includes a fixed penalty of €4,000 for each breach of the PAYE legislation. It also includes a fixed penalty of €3,000 imposed on the company secretary for each breach. These penalties can be imposed on a per-item basis, so if you are even a mid-sized employer, these penalties can build up.
Free eBook: Surviving PAYE Modernisation!
Download your free copy of our PAYE Modernisation guide for employers. In this guide, we discuss practical PAYE Modernisation tips that every employer needs to know. Make sure you avoid fines for non-compliance.Download free guide
Find out more with our free PAYE Modernisation webinars
Revenue has teamed up with Thesaurus Software for a series of free PAYE Modernisation webinars. During the webinars, we will look at what has happened since PAYE Modernisation has gone live and what challenges businesses are facing. Click here to book your place on one of our upcoming webinars.
Jan 2019
24
Last chance to register! Free CPD accredited webinar with Thesaurus Software & Revenue
PAYE Modernisation, One Month On!! New Year, New Payroll Legislation
Thesaurus Software and Revenue have teamed up for another series of free PAYE Modernisation webinars featuring a brand new agenda. We will look at what has happened since PAYE Modernisation has gone live and the challenges businesses are facing.
The first webinar in the series takes place on January 30th and is CPD accredited for accountants. Due to the high level of interest, this webinar is almost booked out with just 50 places remaining. Book your place now to avoid disappointment.
The webinars are aimed at giving you an overview of how the new real time reporting system works, the benefits of this new system and how to make sure that your business is PAYE Modernisation compliant. We will peel back the PAYE Modernisation legislation to outline clearly how PAYE Modernisation affects the payroll process and what is expected from you in 2019 and going forward.
Register here | View extra dates added
Free PAYE Modernisation eBook:
Surviving PAYE Modernisation! What to do to complyDownload your free copy of BrightPay’s PAYE Modernisation guide for employers. In this guide, we discuss practical PAYE Modernisation tips that every employer needs to know.
Download free guide
Thesaurus Software & PAYE Modernisation
Thesaurus Software is the number one payroll software provider in Ireland with two different payroll packages to choose from - Thesaurus Payroll Manager and BrightPay. Both systems include full PAYE Modernisation functionality at no extra cost. We have worked closely with Revenue to ensure that both systems are fully compliant.
Our products are used to process the payroll for over 125,000 businesses across Ireland and the UK. BrightPay won the Payroll Software of the Year 2018 award at the Accounting Excellence awards. With a 99% customer satisfaction rate, our customers can rest assured that all required functionality is catered for.
We have made it easier than ever before to switch to BrightPay - You can import your payroll data from Sage, Collsoft, Big Red Book, and many others.
Book a BrightPay demo | Watch short PAYE Modernisation video | Download 60 day free trial
Jan 2019
14
PAYE Modernisation, One Month On!! New Year, New Payroll Legislation
PAYE Modernisation was introduced on the 1st of January 2019 and affects the way all employers process payroll. It is the most significant change ever to the Irish PAYE system. It is important that all employers and payroll processors understand their new real time reporting obligations.
Free PAYE Modernisation Webinars
Thesaurus Software and Revenue have teamed up for another series of free, CPD accredited PAYE Modernisation webinars. These upcoming webinars have a new agenda. We will look at what has happened since PAYE Modernisation has gone live and at the challenges businesses are facing.
The webinars are aimed at giving you an overview of how the new real time reporting works, the benefits of this new system and how to make sure that your business is PAYE Modernisation compliant. We will peel back the PAYE Modernisation legislation to outline clearly how PAYE Modernisation affects the payroll process and what is expected from you in 2019 and going forward.
Due to the high level of interest, it is expected that the training webinars will soon be completely booked out. Book your place now to avoid disappointment.
Webinar Agenda
- What is PAYE Modernisation and how to comply?
- How PAYE Modernisation will streamline your processes
- The benefits of PAYE Modernisation
- Recent updates and changes to PAYE Modernisation
- Reporting to Revenue in real time
- Making corrections to the payroll
- The approach to non-compliance and penalties
- How Thesaurus Payroll Manager & BrightPay are supporting your PAYE Modernisation journey.
- Guest Speaker: Revenue
The first webinar in the series takes place on January 30th and is CPD accredited for accountants and payroll bureaus. Due to phenomenal demand, we have also added more dates in February.
Thesaurus Software & PAYE Modernisation
Thesaurus Software is the number one payroll software provider in Ireland with two different payroll packages to choose from - Thesaurus Payroll Manager and BrightPay. Both systems include full PAYE Modernisation functionality at no extra cost. We have worked closely with Revenue to ensure that both systems are fully PAYE Modernisation compliant.
Our products are used to process the payroll for over 125,000 business across Ireland and the UK. BrightPay won the Payroll Software of the Year 2018 award at this year’s Accounting Excellence awards. With a 99% customer satisfaction rate, our customers can rest assured that all required functionality is catered for.
We have made it easier than ever before to switch to BrightPay or Thesaurus Payroll Manager - You can import your payroll data from Sage, Collsoft, Big Red Book, and many others in a matter of minutes.
Book a BrightPay demo | Thesaurus Payroll Manager demo
Dec 2018
18
Stranger Danger! - Be aware when processing your tax rebate
Ah humans, we’re a lovely bunch aren’t we? An industrious lot some might say. Always finding ways to adapt, to evolve…...to manipulate. No matter what, if a situation exists where someone can be scammed, then get in line sweetie because there is already a slew of people that have beat you to it. It’s no different this time.
With the introduction of PAYE Modernisation a number of dodgy tax refund websites have sprung up left right and centre with the aim of conning you, yes YOU, out of your hard earned punts and pignins.
These sites basically offer to process tax refunds on your behalf and “all” they ask in return is 10% of the final amount of your rebate whilst also asking you to input your personal details such as your DOB, bank details, PPSN number, and so on. So never mind that this is a pretty bad deal already, the worst thing is that all they do is take the exact same information that you just typed in, and then type the exact same information into the Revenue website and charge you for the courtesy of doing so!
Daylight robbery doesn’t even cover it. The absolute CHEEK of it doesn’t even cover it either! People are needlessly giving these sites a cut of their tax refund, as well as their personal details….for nothing! Zilch. Zero. Nada!
Now I’ve known some amadán úfásachs in my life. There was a boy in my class, Séamus, who thought that teachers lived in the staff room and that chocolate milk came from brown cows. My own mother thought I was going to grow up to be a nice respectable young woman. HA! But giving someone online your details and money for nothing? Now that is just plain stupid. #sorrynotsorry
So what has this got to do with PAYE Modernisation? Where is my tax refund? How come I’ve never seen a baby pigeon? Well, under the new PAYE system, employers have to report employees’ pay and deductions each time they are paid instead of once a year. For anyone who is not properly registered under the PAYE system (for example, a foreign national newly arrived to Ireland) they will be put on emergency tax until they’re registered. This will most likely result in a surge of people claiming tax rebates throughout the year.
Now besides the sheer silliness of it all there is also a more insidious side to all this. I have a feeling the “STRANGER DANGER” of the current generation will be “do not give your bank details to someone who asks for it online”. Not only that, but with all the details you are required to enter they basically have everything they need to impersonate you online whenever they want.
There is also an additional risk that these companies will overstate expense estimates on your behalf in the hope of getting a bigger refund, thus a higher percentage of their cut. If you are later audited by Revenue and they found that you used one of these websites that supplied fake information on your behalf (even without your knowledge) then you, yes YOU, and not the company would be liable for interest and penalties.
Be safe, be savvy, be sassy. That’s my motto. (That, and “there’s always time for a chicken nugget”). Think twice before using these sites or, you know, just don’t! It’s really not that arduous to apply for a refund yourself so don’t be lazy; it will be one less headache to deal with.
To keep up with the latest payroll news, check out our new Bright website. There, you'll be able to register for any of our upcoming payroll webinars and download our payroll guides.
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