What is PAYE modernisation?
PAYE Modernisation involves the most significant reform of the PAYE system since its introduction in 1960. From 1 January 2019 employers are required to report their employees’ pay and deductions to Revenue as they are being paid. This change makes it easier to deduct and pay at the right time the correct amounts of:
- Income Tax
- Pay Related Social Insurance
- Universal Social Charge
- Local Property Tax.
The new real time reporting regime is operational for all employee payments made from 1 January 2019. Employers, agents and payroll providers must ensure they have the correct business processes and practices in place to meet the new requirements.
- improves the streamlining of business processes
- reduces the administrative burden previously experienced by employers in meeting their PAYE reporting obligations.
Next: SMART PAYE