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PAYE Modernization V.S Traditional Way

  • 09-06-2019 9:45pm
    #1
    cutesmart
    Registered Users Posts: 17 ✭


    Hi,

    By my understanding of PAYE modernization, the difference between it and traditional way is:

    1. registration for leavers and starters: No more P45, so employer do not need register for starters. Starers simply need register themselves from " My Account" on ROS.
    Employers simply issue the last payslip to leavers, and no need issue P45 to leavers.

    2. Monthly fling: Employer still need file P30 each month. The new way is revenue release the monthly return before 5th, and employer just need to accept it, or decline it.

    3. No more documents such as P35, P60, P45

    4. Tax credit cert (P2C) is now called RPN, but they look the same.

    Are the above all the difference? Or anything else I missed?


Comments

  • #2
    Tow
    Registered Users Posts: 6,391 ✭✭✭Tow


    Yes.

    The amount of information flowing up to Revenue is huge, there are up to ~50 fields per employee, on each monthly submission.

    The rules on Pay Date are now enforced, much to the surprise of many companies who have had to redo their P35/P60s etc.

    Any 'messing' will result on a knock on the door. Basically, Revenue expect payrolls to be run in their definition of a 'Timely and Accurate manner'. If a company can't achieve this, they have to change their procedures/rules/polices. E.g.:

    - Pay an employee 20,000 my mistake rather 2,000. 20,000 must be reported to Revenue, (and Tax, PRSI, USC etc) as this was that was pad. If the employee returns 18,000, then a negative return can be made for the date it was returned.

    - Boss likes to take money out of the company bank account, when they need 'a few bob' and report it at the end of the Month/Year. This is illegal, each time they are paid they must report it to Revenue on or before the pay date.

    - Boss pays staff, but does not have enough funds to fully pay them self, but Returns their full payment to Revenue, hoping to have enough money in a few days. This again is illegal, what is paid must be Reported for when it is paid.

    etc.

    When is the money (including lost growth) Michael Noonan took in the Pension Levy going to be paid back?



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