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Irish PAYE Modernisation

21 May | By Smart MBS

Irish PAYE Modernisation-1On 1 January 2019 Irish Revenue introduced the most significant reform to the Irish payroll reporting system since 1960. These changes have been introduced to modernise and streamline the payroll process and to address issues with under/over payment of taxes. 

The old P30, P45, P46, P60 & P35 returns have been eliminated to make way for “real-time reporting” Employers are obligated to submit payroll information to Revenue as and when it happens. This makes it easier for Revenue, employers and employees to ensure the correct taxes are deducted at the correct time.

Changes to Compliance

  1. Online Reporting

Revenue has moved all payroll reporting online to the Revenue Online System,

“ROS” Every employer is obligated to register on a ROS account through Revenue.ie in order to report their employees income in real time.

  1. Revenue Payroll Notification, (RPN)

The RPN replaces the P2C tax credit certificate and provides information to the employer of the correct tax deductions to apply to an employees gross pay. Payroll software will retrieve the relevant RPNs from Revenue as part of the normal payroll process. If you do not use a payroll package you can request an RPN through your companies ROS account. If you are unable to retrieve an RPN emergency tax has to be applied to the employee’s pay. The most up to date RPN should always be used when calculating an employee’s pay and deductions

  1. Payroll Submission

Payments made to employees must be reported to Revenue on or before the pay day by way of an online Payroll Submission. Therefore, employers who pay their employees weekly must submit details of pay and deductions on a weekly basis, monthly on a monthly basis etc. For each employee paid the following information must be provided on the submission:

  • amount of pay
  • payment date
  • amount of Income Tax, Universal Social Charge and Local Property Tax deducted

If you use a payroll software these submissions will be automatically prepared and communicated seamlessly with Revenue via ROS.

  1. Statement of Account

From the payroll submissions Revenue generates a payroll statement of account per company. This will be available by the fifth day of the following month and will show a summary of the total liability owed to Revenue. If no corrections or amendments are made before the 14th day of the month Revenue will deem the statement to be the correct return. The tax liabilities must then be paid either monthly or quarterly, depending on the companies filing deadlines.

This can seem like a lot especially for companies that were used to manually reporting payroll and used the P35 to “correct” any tax inaccuracies made during the year. Outsourcing your payroll obligations to a qualified payroll company is the perfect solution to ensure your employees salary and deductions are calculated correctly and your company is compliant with the new payroll reporting introduced by PAYE Modernisation.


SMART MBS has the expertise to provide you with hassle free payroll support instantly by utilising an integrated payroll software that communicates directly with ROS. All our payroll operators are up to date on the changes introduced by PAYE Modernisation and can tailor a cost efficient payroll package to your specific business needs. You can book a free consultation here

Disclaimer: This blog is intended as a brief overview of PAYE Modernisation in Ireland. The blog does not represent taxation or legal advice and that independent advice should always be sought in respect of such matters etc. 

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Topics: Ireland, Tax, Income Tax, PAYE



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