PAYE Modernisation Thesaurus Webinar 30 January 2019 Background - - PowerPoint PPT Presentation

PAYE Modernisation Thesaurus Webinar 30 January 2019

Background & Design Principles

Why modernise PAYE?

Changing nature of:

• Employments
• Payroll
• Information and communications technology
• Expectations

PAYE Modernisation

Seamless integration into payroll Minimize employer cost to comply Abolition of P30s, P45s, P46s, P60, End

• f Year Returns

Right tax paid on current due dates Time savings Simplified online services Maximise use of entitlements Automatic end of year review Real time accurate data Transparency Statutory in-year employer return Making compliance easier Accurate up to date income details Reduced customer contacts Timely targeted interventions

Where are we now – Jan 2019

• Seamless Integration With Payroll
• Minimize Cost for Employers to Comply
• Abolition of P30s, P45s, P46s, P60, End
• f Year Returns
• Right Tax on Current Due Dates
• Time Savings

Where are we now – Jan 2019

• Simplified Online Services
• Maximise the Use of Entitlements
• Automatic End of Year Review
• Real Time Accurate Data
• Transparency

Where are we now – Jan 2019

• Statutory In Year Return
• Making Compliance Easier
• Accurate Income Details
• Reduce Customer Contacts
• Timely Targeted Interventions

Context

System Update – Monday 28 January 2019

• 842,000 RPN requests by employers
• Representing 151,000 unique employers
• 353,000 successful payroll submissions
• Representing over 2.2 million Employees
• Unique number of employments - 2.3 million
• Range of payroll sizes successfully submitted

Employer Obligations

Employer Obligations

• Commence or cease employees on Payroll.
• Request Revenue Payroll Notification (RPN).
• Submit Pay and Tax details on or before payment to

employees.

• Review monthly statement made available on ROS by

Revenue and reconcile it with payroll records.

• Deemed your return by the 14th of the following month.
• End of Year Returns (P35) - each month stands as a statutory
• return. No option to tidy up at year end
• Persistent Technology Failure.
• For 2019 there will no longer be an obligation on employers to

provide P60 to employees

Payroll Reporting Options

Payroll Reporting Options

Payroll Software

• Direct Payroll Reporting- payroll software communicates with

Revenue seamlessly

• ROS Payroll Reporting- Upload files created by payroll

software through ROS No Payroll Software

• Employer must request RPNs and complete an online form to

record pay and payroll deductions for employees through ROS

Reviewing the payroll information

Understanding on screen information

• Error messages will be sent automatically from the

system

• Where items are incorrect the message will refer to

the inaccuracy

• If an out of date RPN has been applied a warning will

be visible on the payroll history

• If a correction has been made both sets of data will

be available (corrected and original)

Statement

Payment Options

Employer Obligations for Payment

Payment options Guidance on payment options on Revenue website

• No change to payment dates – 14th or 23rd of the following

month

• Quarterly/Annual remitters remain paying quarterly or

annually but must submit payroll each time they pay their staff.

• Fixed Direct Debit remains the same.
• Variable Direct Debit available from 25th January

Payment Options

Employer can make payments using a number of different options available through:

• Statement of Account

– Credit card – Debit card – Bank Account – RDI

• Payments and Refunds
• Variable Direct Debit

Payment Methods – Statement of Account

Making payment through Statement of Account

Select Statement of Account

Making payment through Statement of Account

Select Make Payment

Making payment through Statement of Account

Prepopulated amounts to match Return

Making payment through Statement of Account

Customer must select one of the following options to make payment. The ROS Debit Instruction (RDI) option will only be available if an RDI has been set up previously in ROS.

Making payment through Statement of Account

Selecting Credit Card will divert you to the 3rd party website Realex as per current process

Making payment through Statement of Account

Selecting Debit Card will divert you to the 3rd party website Realex as per current process

Making payment through Statement of Account

Realex Screen. Enter details and select Pay Now

Making payment through Statement of Account

Using my bank Account (Once off payment – SDI). Enter bank details and select next which will take the customer to the Sign and Submit screen

Making payment through Statement of Account

Bank details pre-populated as RDI was previously set up. Customer selects next and is taken to the sign and submit screen.

Making payment through Statement of Account

xxxx

Payment Methods – Payments & Refunds

Making payment through Payments & Refunds on the ROS My Services screen

From the Payment & Refunds section select Submit a Payment

Making payment through Payments & Refunds on the ROS My Services screen

Customer must enter Payment type (Tax Payment/Declaration. The Tax type will be PAYE-Emp and the period will be Post 2019 for PMOD periods. Customer then selects Make Payment which opens the Select a Tax Period screen.

Making payment through Payments & Refunds on the ROS My Services screen

Customer enters the year and period they wish to pay from the drop-down menu and then selects Next.

Making payment through Payments & Refunds on the ROS My Services screen

Pre -populated amounts to match the return for the period selected

Making payment through Payments & Refunds on the ROS My Services screen

Customer must select one of the following

• ptions to make payment. The ROS Debit

Instruction (RDI) option will only be available if an RDI has been set up previously in ROS. (The payment screens are the same as detailed above.)

Payment Methods - Variable Direct Debit

Variable Direct Debit

To set up a Variable Direct Debit: Select manage Bank Account -> SEPA Direct Debit Instruction

Variable Direct Debit

From the Drop down menu select: Variable Direct Debit then click on Manage Direct Debits

Variable Direct Debit

Once Manage Direct Debits is selected the customer is taken to the Create New Mandate screen.

Variable Direct Debit

Once Create New Mandate is selected the below screen is displayed to the user showing all available registration numbers that can be selected for Variable Direct Debit

xxxx xxxx xxxx

Variable Direct Debit

Select a Registration number and click Next

xxxx xxxx xxxx

Variable Direct Debit

Enter required details (Name, Address, BIC (optional) and IBAN). User ticks the Declarations and clicks on Next

Variable Direct Debit

Variable Direct Debit

A Summary screen with all of the details that were entered will be displayed to the customer

xxxx

Variable Direct Debit

Variable Direct Debit

Ros user must sign and submit

xxxx

PPSN Checker

PPSN Checker

• Available in ROS
• Agents, employers and pension providers requested

PPSN checker facility as part of the co-design with Revenue.

• A maximum of 10 PPSNs can be checked at one time.
• Captcha used to protect from phishing and internal

reports will be produced on usage

• Result is either that PPSN can be used for that employee
• r that you need to contact employee and confirm PPSN

Business Process

Operation of Payroll

• It is imperative that employers now focus on the

monthly statutory return. Information submitted per pay frequency should be accurate and timely. The end of year tidy up is gone.

• The real time reporting regime will make these

visible and such processes will need to change.

• Employees must be easily able to reconcile their

payslips with the data submitted to Revenue on their behalf.

Corrections

• While it is recognised that errors in payroll will occur, every effort

should be made to ensure that submissions to Revenue are accurate and timely. Guidance for managing corrections is available

• n the Revenue Website.
• If the information contained in the statement issued by Revenue is

incorrect, there is a legal obligation on the employer to fix the relevant payroll submissions to ensure that the return reflects the correct liability for the month.

• This may require the employer to fix incorrect submissions or

submit any outstanding payroll submissions.

• All data received, including corrections and the timing of

submissions, will feed into Revenue’s risk analysis systems.

Net pay arrangement

• Net pay arrangements should not be agreed. They can leave

the employer exposed to an additional liability due to reallocation of credits by the employee.

• If incorrect tax credits and rates are used by employer, you

could be liable for any shortfall with the possibility of the amount being re-grossed

• Always deduct tax based on the Revenue Payroll Notification

(RPN)

• Ensure that correct tax deductions are applied
• The RPN is available in real time – tax credits and rate bands

available for that employee at payment time.

Revenue Payroll Notification

• The Revenue Payroll Notification (RPN) can only be

used for the year it is issued.

• Employees must be registered for PAYE in order for

an employer to receive a 2019 RPN for them.

• Where no RPN is returned, employees should be

taxed on an emergency basis.

• New emergency tax provisions apply per the revised

regulations.

Emergency Basis of Deduction

Employer Reference Number

• Where a payment is being reported for an employee

who has not provided a PPSN to the employer, an employer reference number must be reported on each payroll submission

• The employer reference must be included until the

PPSN is received by the employer and reported to Revenue

• The employer reference number must be unique and

cannot be changed until the PPSN is received by the employer and reported to Revenue

Regulation 12 - Benefits in kind

• Regulation 12 of the Income Tax (Employments) Regulations 2018 covers

the reporting requirements for notional pay (company cars, medical insurance, etc).

• Notional pay can be reported

1. the day the notional payment is made, or 2. the earlier of the next pay day or the 31 December in the year.

• Employers should include a best estimate of the value of any benefit and

include that amount in the relevant payroll submission to Revenue.

• When the actual value of benefits becomes available, any adjustment

should be included in the next payroll submission to Revenue.

Regulation 12 - Benefits in kind

• Employers are also advised to review notional pay

regularly (at least quarterly) Similar practices will apply for the following:

• Share based remuneration
• Shadow Payroll
• Taxable Expenses

Common Errors

Common Errors

• Employee List errors
• Requesting RPN in advance of running payroll and not

checking for an update

• Not uploading RPN into software
• Overwriting RPN
• Inserting incorrect tax year and header on the

submission (2019)

Common Errors

• Invalid Items – main reasons:

– Pay date must be within the tax year – Duplicate line items – Invalid number of pay periods selected

• Emergency Tax

– Employers should look up RPNs. If no RPN returned for an employee they should use the New RPN request and use the details returned. Need to make sure software is updating with the detail of the new RPN and using these figures even if it is a nil RPN.

Common Errors

• Corrections / Deletions

– Employers starting to make corrections and deletions. Calls being received on how to do this in software or where software does not support it. – Need to ensure payroll run summary is reviewed after corrections / deletions as some employers are doubling up on submissions.

• Pay Date

– Submissions reported with pay dates in 2018 and also pay dates in December 2019

• Employment ID

– Duplicate employments being set up where new RPN request and payroll submission have different employment IDs – Two new RPN requests received with different employment ID

Stakeholder Engagement January - April 2019

External Stakeholder Engagement 2019

14th External Stakeholders 16th PAYE Modernisation Service User Group 23rd Theatre Directors Forum January February 20th PAYE Modernisation Service User Group 21st Department of Education March 5th CPA Dublin 12th CPA Cork 17th PAYE Modernisation Service User Group April 11th External Stakeholders 20th PAYE Modernisation Service User Group 8th IPASS Annual Update Day Dublin 9th IPASS Annual Update Day Cork 10th IPASS Annual Update Day Athlone 24th SAP User Group 30th Thesaurus Webinar 27th ACCA Event Dublin 28th ACCA Event Limerick 22nd CPA Webinar 6th ESB East Wall

Employee view in Jobs and Pensions

Employee View – PAYE Online Services

Employee View – PAYE Online Services

PAYE Online Services– employment cessation details

PAYE Online Services– employment cessation details

Information for Employees

2019 Tax Credit Certificate

2019 Tax Credit Certificate includes the following PAYE modernisation information for employees:

• Employer reporting obligations
• Ceasing/changing employments
• Jobs and Pensions
• Details of myAccount services

Preparing for PAYE Modernisation

Getting Ready

• Have you the right Personal Public Service (PPS) number for

all your employees?

• Have you requested a Revenue Payroll Notification (RPN) for

your employees prior to running your payroll?

• Have you submitted the right amount of pay, payment date

and amount of income tax, USC, PRSI and LPT?

• Have you reconciled our response with your payroll totals?
• Have you adequate controls in place to ensure that

benefits/notional pay can be accurately calculated and reported to Revenue?

• Encourage employees to register for myAccount and verify tax

credits\rate bands are correct.

Information

Information

ROS Help Centre : https://www.ros.ie/helpcentre/help.html?lang=en

Information

• Regular updates on revenue.ie
• National Employer Helpdesk: 01-7383638 or

1890-254565

• MyEnquiries - for complex queries.