The ongoing modernisation of the PAYE system will mean that the new SMART reporting will come into effect in January 2019.
Under the new system, employers will need to calculate and report their employees’ pay and deductions in real time – ie – as they are being paid. This will make it easier to deduct and pay at the right time the correct amounts of PAYE, PRSI, USC & LPT.
You can check what you need to know and prepare on revenue website ( https://www.revenue.ie/en/employing-people/paye-modernisation/getting-ready-for-paye-modernisation.aspx )
How to report in real time
From 1 January 2019, you will receive the most up to date RPN (Revenue Payroll Notification) which will replace the ROS P2C tax certificate.
If you use payroll software, there are two methods of reporting payroll in real time:
- Direct Payroll Reporting –allows payroll software communicate seamlessly with ROS to exchange the required information.
- ROS Payroll Reporting – allows you to use files created by payroll software and upload these through ROS.
Payroll software companies have been working with Revenue to make sure their software will be compatible with Revenue’s requirements.
If you do not use payroll software, you will be able to retrieve RPNs and complete a form through ROS.
By using real time reporting the processes of reporting and paying over PAYE and other taxes deducted will be significant streamlining of existing business processes by eliminating the need to file:
What information will you report to Revenue?
You must provide Revenue with payroll information for each employee, including:
- amount of pay
- payment date
- amount of Income Tax, USC and LPT deducted.
Statements from Revenue
Revenue will issue you with a monthly statement based on your submissions.This statement will show a breakdown of your liability for:
- Income Tax
If the details on the statement are incorrect, you must correct the payroll data and make another submission.
The statement will be deemed to be the return if no amendments or corrections are made before the return due date. The returns will now need to be filed monthly, however the filing deadlines will remain the same ie 14 days after the end of the month (or 23 days if filing through ROS)
A variable direct debit option will also be available, subject to Revenue approval.