From 1st January 2019, PAYE will change, and employees will no longer receive P60s, in a redesign of the system called PAYE Modernisation.
The PAYE system has not seen much change since its introduction in 1960, and this PAYE Modernisation is expected, according to Revenue.ie, to make things much easier for employers by improving the streamlining of business processes and reducing the administrative burden of employers to meet the PAYE reporting obligations.
What do employers have to do?
Employers will need to adjust their business processes to meet the new PAYE requirements. From January onwards, they must calculate and report their employees’ pay and deductions as they are being paid.
How does this make things easier?
The improvements to the system will improve accuracy by calculating and reporting employees’ pay and deductions as they are being paid, it will make it easier for income tax, PRSI, USC, and Local Property Tax to be calculated.
It will also ensure that these taxes are deducted at the right time and from the right employees, as well as ensuring that the taxes are paid in the correct amount of deductions for every employee.
