Welcome PAYE Modernisation be to todays webinar considered a - - PowerPoint PPT Presentation
October 2019 One year later Can Welcome PAYE Modernisation be to todays webinar considered a triumph? Paul Byrne Managing Director Thesaurus Software Questions Recording Email Ian Jenkinson Senior Sales Executive Thesaurus
Paul Byrne
Managing Director – Thesaurus Software
Ian Jenkinson
Senior Sales Executive – Thesaurus Software
Sinead Sweeney
PAYE Modernisation Change Manager – Revenue
Questions Recording Email Handouts CPD Accredited
One year later… Can PAYE Modernisation be considered a triumph?
How BrightPay Connect’s cloud platforms can improve your efficiency
Revenue Presentation
More accurate tax credits for employees Much more up-to-date information for Revenue Employers’ PAYE liabilities are known in read time
Contain tax credits and cut
Similar to the old P2C files Can be easily retrieved before each pay run
Needs to be submitted on or before each pay run A Payroll Submission Request is similar to a mini P35 In most cases, a submission is required either weekly or monthly
An RPN can be retrieved from Revenue at the click of a button Direct integration allows employers to connect directly to Revenue’s system A PSR can be submitted directly to Revenue from within the payroll software
An RPN will alert Revenue of the employment and an RPN will be made available Employers are required to notify Revenue of new employees Similarly, by including a leave date
leaver
Employers don’t need to manually accepted the statement Revenue issue a monthly statement to employers based on the submissions made Payment due dates and method of payment remain the same
EMPLOYERS
EMPLOYEES
PAYROLL SUBMISSIONS
Revenue integration – one click submissions to Revenue Overall reduced workload required each pay period & more time savings Eliminated ‘P’ forms - P60s, P45s, P46s, P30s and P35s no longer required
Employee tax records - more accurate Less under or over payment of tax Maximum use of their entitlements Full visibility via myAccount Statement of Income & Deductions
Rollout coincided with P35 deadline for 2018 tax year and VAT returns deadline Issue of educating clients to do things differently - e.g. net to gross Timeliness and accuracy of the information given by clients has generally improved Improved further by client payroll entry and approval with automated audit trail?
Up to 10% of employers still processing payroll using a manual system Very time consuming, cumbersome and prone to error These employers should be taking advantage of using either the services of a payroll bureau or payroll software
Unexpected challenges, e.g. regional settings Multiple upgrades after initial release Unable to test some scenarios
Payroll data being sent to Revenue more than once Duplicate employments for the same employee Payroll submissions failing validation process Employment record ceased for employees in error Employers failing to apply the most up-to-date RPN Employees being taxed on an emergency tax basis Incorrect
emergency tax ‘Gross Pay’ shown as less than ‘Pay for Income Tax’ No USC deducted for an employee not USC exempt Employers paying their tax liability twice in error
Issues with networks – an administrator cert is needed New certificate issued – not actually activated until the following day
Changes made manually don’t sync back to the payroll software Duplicate employments for the same employee
Additional PREMs required where there are multiple branches Without an additional PREM, the PSR shows up as duplicate line item ID Some problems due to Revenue being unaware of certain situations
Incorrect details included on the RPN
emergency tax
The pay date is when the payment is actually made The concept of the pay date caused some confusion
Revenue slowtime meant that PSRs were being sent but no response from Revenue Users can check the Revenue reconciliation for proof of successful submission
Old Windows XP computers not compatible with new security measures These security measures are needed for the Revenue integration to work It’s very important to take backups of payroll data with PAYE Modernisation
Difficult to backdate the payroll data so that the periodic submissions are correct Free cloud backup to seamlessly backup your payroll data to the cloud
Employers should rectify mistakes to ensure it doesn’t affect future payrolls Early action can also reduce the possibility of Revenue intervention A constant pattern of corrections or late submissions – Revenue may take corrective action
FIXED PENALTY
FIXED PENALTY
Per Breach of the PAYE Regulations Imposed on the company secretary
Challenges vs. Benefits
Challenging few months for everyone, but starting to experience the benefits
One more challenge
No issues with the transition into the new tax year and employee’s year end statements
PAYE Modernisation UK System
Correction submissions Cumulative submissions Digital certificates Password Authentication Big Bang approach Voluntary Pilot Year Changes via multiple sources Changes via payroll only