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PAYE Modernisation

On 1 January 2019 a brand new way of reporting payroll in Ireland came into effect. Known as PAYE Modernisation, it requires and facilitates that employers report detailed payroll information to Revenue on a continuing basis. On 1 January 2019, payroll in Ireland became dramatically different from what came before. PAYE Modernisation means employers have to submit detailed information to Revenue on a continuing basis.

What exactly has changed?

First, let's start with what hasn't changed. Calculations regarding PAYE, USC etc. remain largely the same. What's new is replacing P2Cs with RPNs, and getting rid entirely of P30s, P35s, P45s and P60s.

What's an RPN?

Short for "Revenue Payroll Notification", the RPN contains all the info you used to get from a P2C. A key difference is that you can now give your payroll system permission to get these directly from Revenue, which cuts down on admin and improves accuracy. You have to check for new RPNs every time you run payroll.

If there are no more P30s, how do I submit tax totals to Revenue?

The crux of PAYE Modernisation is that the information is submitted to Revenue every time you make a payment. Therefore, at the end of the month / quarter, when your payment is due, Revenue already knows your outstanding liability, and therefore no additional submission is required.

What about P35s and P60s?

The information submitted to revenue when a payment is made also includes all the information that used to reflect on the above documents, such as PRSI classes, medical insurance amounts etc. Because Revenue now has all this information at hand, there is no more need for P35s and P60s. Because that information also includes the leaving date, Revenue also has the information that used to be inluded on the P45, which is why it's no longer required.

Anything else I need to know?

Yup! SimplePay provides software that makes it a breeze to work with PAYE Modernisation. Check out our features page, or sign up for a free 30 day trial today!

How will this benefit me as an employer?

PAYE Modernisation has many benefits, and SimplePay enhances those benefits in these ways:

Increased accuracy: SimplePay will retrieve RPN information daily, ensuring that the system uses the most recent tax information for payroll calculations. You can also manually request that RPN information be refreshed in SimplePay. 

Reduced monthly administration: No more monthly filing of P30s with Revenue. Simply use the Excel file generated by SimplePay to confirm your payroll information and then report it directly to Revenue with the click of a button. 

Make amendments easily: Submitted your payroll information to Revenue before realising you made an error? No problem. Simply make the amendment on the payslip and SimplePay will identify the incremental changes that need to be submitted to Revenue. 

Seamless tax-year ends: With SimplePay and Revenue communicating in real-time, there is no need to submit P35s and P60s to Revenue at the end of each tax year. Upload a certificate from ROS when joining SimplePay to establish a link that'll let the system take care of most of your interactions with Revenue. 

Avoid emergency tax for employees: Have a new employee? No need to submit P45s anymore or wait for Revenue to send you a P2C. Our direct link with Revenue allows you to request that Revenue creates an RPN for the employee. 

Better business: With PAYE Modernisation being fully integrated with SimplePay, employers can save time and costs with a simplified payroll process. Furthermore, the reduction in risk of employees overpaying or underpaying tax increases employees’ confidence in the payroll process and reduces the risk of you paying penalties.

Read more about what our system can do here or sign up for a trial account.