PAYE Modernisation Opportunities and Challenges Sen OConnor - - PowerPoint PPT Presentation

PAYE Modernisation – Opportunities and Challenges

Seán O’Connor Administrative Data Centre

ADC (Administrative Data Centre)

Survey system 1 Survey system 2 Survey system n Admin data source 1 CSO Admin data source 2 DEASP Admin data source 1 Admin data source 2 Revenue Survey system ...

Organisation n

ADC

PMOD?

• 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.

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Old style

• Two files sent to CSO
• Sent in year t (April and August)
• Data for t-1
• April/August 2019 – Employee/Employer information for 2018.
• One record based on each unique combination of;
• Employee ID, Employer ID
• PRSI information contained also.
• Circa 3.7million records and 29-35 variables.
• Used as an input for various CSO statistical products.
• GDP, SBS, SILC, Earnings and Labour Market.

4

New Style

• Larger volumes of data being sent.
• Sent in month t (Last Monday of month t).
• All payslip submissions received into the system for month t-1.
• Monday Sep 28th – All records sent to Revenue from August 1st –

August 30th.

• 5.5 – 7.5 million records per dataset and circa 70 variables.
• +/- depending on economic circumstances.

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Creating a usable dataset for statistics

• Dataset contains a variable called (pay date).
• Date individual is being paid.
• Split records into year-month based on (pay date).
• Jan-2019
• Feb-2019
• June-2020
• One record for each valid payslip in the month.
• Gross Pay, Pay for Income Tax, PRSI class, Pension payments etc.
• Also create a year to date dataset too which will incrementally update as we move through

periods.

• Aggregated based on a unique combination of Employee ID, Employer ID and PRSI Class.

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Tricky Part!!!!!

• Employers are able to make amendments and deletions to

payslip submissions at any time.

• Month t delivery may have amendments and deletions

relating to a delivery received in month t-1,-2,-3,-4,…….- n.

• Generally only amendments/deletions for the previous

month or two.

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6.7 6.2 6.8 6.3 7.5 6.5 6.6 7.3 6.5 7.2 7.0 6.6 7.3 6.4 6.4 6.0 5.6 5.5 6.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Active records 6.7 6.2 6.8 6.3 7.5 6.5 6.6 7.3 6.5 7.2 7.0 6.6 7.3 6.4 6.4 6.0 5.6 5.5 6.5

Active monthly records - as of July 2020 returns recevied in August 2020

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0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 WEEKLY FORTNIGHTLY MONTHLY

Pay Frequencies by selected NACE sectors

Current benefits and potential new avenues

• More accurate estimations of quarterly macroeconomic

indicators.

• Quarterly estimates of GDP.
• Providing insights into employment and earnings during Covid-

19.

• Cohorts of interest to help inform public policy and society.
• Next few slides is an illustration of what has been done and

potentially can be done.

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11

11.6 14.1

• 4.2

2.9 1.9 0.6

• 3.9
• 6.5
• 6.3

4.7 2.6

• 4.9

0.9

• 5.6
• 70.0
• 60.0
• 50.0
• 40.0
• 30.0
• 20.0
• 10.0

0.0 10.0 20.0 Accommodation and food services Arts, entertainment, recreation and other service activities Administrative and support services All sectors Wholesale and retail trade; repair

• f motor

vehicles and motorcycles Transportation and storage Professional, scientific and technical activities Construction Financial, insurance and real estate Education Public administration and defence Information and communication Human health and social work Industry

Percentage change between 2020Q1 vs 202Q2

Employment Earnings

Source: Labour Market Insight Bulletin – Series 2

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0.3 5.5 10.4 14.9 15.1 22.5 25.9 32.3 33.1 41.9 43.0 43.8 54.2 61.0 0.1 1.9 3.8 3.1 3.3 10.6 8.5 10.2 8.7 18.3 24.1 14.9 24.2 51.8 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 Public administration and defence Education Human health and social work Information and communication Financial, insurance and real estate Administrative and support services All Sectors Professional, scientific and technical… Industry Wholesale and retail trade; repair of motor… Arts, entertainment, recreation and other… Transportation and storage Construction Accommodation and food services TWSS payments as share of total earnings Employments with at least one TWSS payment

Percentage of employments and total earnings supported by TWSS - Q2 2020

Source: Labour Market Insight Bulletin – Series 2

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55,539 74,194 243,947 50,000 100,000 150,000 200,000 250,000 300,000 500 1000 1500 2000 2500 3000 3500 4000

N>30

100,000 and below 46 100,001 to 150,000 43 105,001 to 200,000 38 200,001 to 250,000 37 250,001 to 300,000 36 300,001 to 350,000 36 350,001 to 400,000 36 400,001 to 450,000 37 450,001 to 500,000 37 500,001 to 550,000 39 550,001 to 600,000 39 600,001 to 650,000 40 650,001 to 700,000 40 700,001 to 750,000 40 750,001 to 800,000 41 800,001 to 850,000 42 850,001 to 900,000 42 900,001 to 950,000 43 950,001 to 1,000,000 44 1,000,001 and above 44

Illustration purposes only

Housing and Income

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Illustration purposes

• nly

Housing and Income

Conclusion

• PMOD can act as a compliment to outputs produced by the LFS, EHECS and other official

labour market metrics.

• New insights at detailed geography/ sectoral possible in a timely fashion.
• Can combine with other sources (admin and non-admin) for further policy relevant
• utputs.
• Housing affordability, job churn and educational attainment, firm characteristics etc.
• Can do a lot but still need surveys to fill in gaps.
• Qualitative information – deprivation indicators.
• Non-admin indicators – hours worked/union membership etc.
• Official and internationally comparable definitions of employment/unemployment

etc.

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