This report covers a newly-published brochure entitled “PAYE Modernisation – Real Time Reporting of Payroll Taxes,” from KPMG in Ireland.
PAYE modernisation represents the biggest change in Ireland to the administration of employment taxes since the introduction of the PAYE system in 1960.1 In simple terms, real time reporting (RTR) requires employers to submit the details of each employee’s pay to Revenue on or before each pay day. An accurate and detailed breakdown of all pay, deductions, and tax must be disclosed in respect of each employee, effective 1 January 2019.
The KPMG International member firm in Ireland has just published a new brochure entitled “PAYE Modernisation – Real Time Reporting of Payroll Taxes (PDF 665 KB),” that readers may access. To learn more, click here.
The scale of the business process changes required should not be underestimated, particularly for companies with complex payroll structures. For example, the frequency with which this level of information needs to be provided to Revenue will mean a major operational change in the management of payroll taxes.
Also, it should be noted that Revenue is aware that many employers’ processes include a ‘catch up’ at year end. This will no longer be possible under the new regime.
Areas that have historically been challenging to deal with from a payroll tax perspective need to be reviewed to establish whether the processes in place are appropriate and robust for purposes of managing the accurate submission of data to Revenue, for example, share-based remuneration, benefits-in-kind on company cars, inbound/outbound assignees and short-term business visitors, etc.
1 For additional information from Revenue, click here.
The information contained in this newsletter was submitted by the KPMG International member firm in Ireland.
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