The Minister for Finance, Mr. Michael Noonan TD, announced the launch of Revenue's public consultation process regarding the modernisation of the Pay As You Earn (PAYE) system in his budget statement of 11 October 2016.
PAYE modernisation will involve the most significant reform of the PAYE system since its introduction in 1960. Employers will need to calculate and report their employees’ pay and deductions as they are being paid. This will make it easier for Revenue, employers and employees to ensure that the right tax is deducted and paid at the right time.
The new real time reporting regime will be operational for all employee payments being made from 1 January 2019. This will require employers, agents and payroll providers to review their current business processes and practices so that they meet the new requirements.
PAYE modernisation will:
- improve the streamlining of current business processes
- reduce the administrative burden currently experienced by employers to meet their PAYE reporting obligations.
Next: SMART PAYE