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Thousands of employees could be overcharged tax in 2019 – Chartered Accountants Ireland


Employers Must Act Now to prepare for PAYE Modernisation

Tuesday, 18 September 2018

Chartered Accountants Ireland is calling on all employers to engage with Revenue in advance of the fast approaching 1 January 2019 implementation of a new PAYE system called PAYE Modernisation.

So far it appears only some 11,000 employers have provided Revenue with the List of Employees which is critical to the smooth commencement of the new system.   There are almost 200,000 employers in the country.

According to Chartered Accountants Ireland Director of Public Policy and Taxation Brian Keegan, there is a real risk of some employees suffering harsh emergency tax in the January payroll – the first pay cheque after Christmas – unless these lists are right.

“PAYE Modernisation should ultimately have benefits for employers and employees alike, as employees who pay their tax through the PAYE system will be able to claim tax credits and reliefs with more ease under the new arrangements.  There is however a compliance cost to Irish business.  It’s essential that all employers get involved now with the switchover to manage this cost and help ensure their workers don’t lose out” said Dr Keegan.

The Institute recommends that employers submit their employee lists to Revenue through Revenue’s Online Service (ROS).  Uploading this list will ensure that both Revenue and employer records are aligned and employers are receiving the most up to date employee information to calculate their deductions.

The deadline for uploading this list is 31 October 2018, to allow sufficient time to complete the data alignment process and amend any differences before the go live date of 1 January for PAYE.  Failure to upload this list runs the risk of discrepancies between employer’s lists and Revenue’s lists not being remedied before 1 January, resulting in a high possibility of employees suffering harsh emergency tax in the January payroll.