PAYE modernisation: Common mistakes & how to avoid them

In January 2019, we saw the biggest overhaul of the Irish PAYE system since it was introduced. PAYE modernisation requires employers to submit the details of each employee’s pay to Revenue on or before each payday. The new real-time reporting system meant that all forms relevant to payroll taxes (P30, P35, P60, and P45) were abolished. Instead, Revenue issues employers with a monthly statement based on the submissions made by the employer with a summary and breakdown of the total liability due.

It probably goes without saying, compliance with PAYE modernisation is compulsory, and the penalty regime is pretty stiff. The regime includes a fixed penalty of €4,000 for each breach of the PAYE legislation and a fixed penalty of €3,000 imposed on the company secretary for each breach.

With these high stakes, there are three big mistakes you need to avoid when it comes to PAYE modernisation.

The DIY approach

We’d be lying if we said it was impossible to comply with PAYE modernisation manually. It’s possible, of course. But lots of things are technically possible: climbing Everest is possible, for example, but it’s difficult.

So yes, technically speaking, your business can go the DIY route to comply with PAYE modernisation. If you don’t have compliant software, the relevant information must be submitted to Revenue manually through Revenue Online System (ROS).

But why struggle when you don’t need to? With the right payroll software in place, the transition can be seamless while also offering many real-time reporting benefits to businesses and employees.

Set and forget

Outsourcing payroll compliance can be a fantastic way to eliminate administrative burdens and free up time. But fundamentally, PAYE modernisation compliance is the employers responsibility.

When you choose an outsourcing partner, you need to be certain that they are not going to overlook your real-time payroll reporting duties. Check with your payroll provider to see how they’re complying, and whether they’re using industry-standard, compliant software like Thesaurus Payroll Manager.

Not choosing the right software

If you have - rather wisely - opted for the software route to comply with PAYE modernisation, there’s another decision to be made: choosing the right supplier.

There’s a lot of choices out there, but very few software suppliers can lay claim to Thesaurus Software’s level of preparedness. We’ve worked with Revenue from day dot to make PAYE modernisation a success, and our software makes compliance simple. So if you’re seeking the right software partner, look no further.

Watch a demo today to discover how Thesaurus Payroll Manager can improve your payroll reporting processes.