Revenue extends deadline for employers to register staff for digital payroll system

New real-time system, known as as PAYE Modernisation, comes into force next year

Revenue says that more than half of employers that have uploaded their list of employees have less than five employees
Revenue says that more than half of employers that have uploaded their list of employees have less than five employees

Some 78,000 employers, who still have not uploaded their staff details to the Revenue’s new digital payroll system, have been given additional time.

The real-time system, known as as “PAYE Modernisation”, comes into force on January 1st next year.

It will eradicate form-filling, removing the long-standing P30, P35 and P60 tax forms from the system in favour of a more streamlined digital process.

More 100,000 employers have already submitted their employment details to Revenue, covering some 80 per cent of employments.

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Revenue said on Friday it had extended the facility allowing employers upload their list of employees for the remaining 78,000 employers who have yet to do so.

“Due to high levels of employers uploading their employee details this week, employers who have not yet uploaded their ‘list of employees’, have been given more time to carry out this important preparatory step for the changes to the PAYE system, which come into effect from January 1st, 2019,” Revenue said.

“Uploading a list of employees will ensure that both Revenue and employer records are accurate and up to date.”

More than 100,000 employers have already submitted their list of employees, covering over 2.3 million employments.

Total

The total is greater that the number of people employed in the Republic, which was recorded at just over 2.237 million earlier this year, reflecting the fact that many workers have more than one job.

According to Revenue, more than half of employers that have uploaded their list of employees have less than five employees, a further third have between five and 20 employees and the balance of employers indicated they have more than 20 employees.

From next year, it said the PAYE system, which was first introduced in 1960, is changing to “real time”.

“This means that every time employers pay their employees, they will report the pay and deduction details to Revenue as part of the payroll process,” it said.

If employers, payroll operators or tax agents have any queries, Revenue has a dedicated Employer Helpdesk that can be contacted on 01-738 3638.

Revenue chairman Niall Cody has previously described its PAYE modernisation programme as the biggest shake-up in the State's tax system since the introduction of self-assessment in the late 1980s.

The real-time data will ensure that employees get the full benefits of credits and reliefs in the given year.

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times