Time to prepare for PAYE modernisation

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Roy Finucane of TaxAssist
Roy Finucane of TaxAssist

THE countdown has already begun on the introduction of the PAYE Modernisation system which means that all employers will have to report all wage payments to the taxman using a new Real Time Information (RTI) system from next January.

Small businesses will have to adjust to the complicated new rules and software which will result in increased costs and administration for all SME’s but in particular those small employers who are currently using a manual payroll system.

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Roy Finucane, owner of TaxAssist Accountants in Limerick City said that under the new regime,Revenue will effectively make it compulsory for employers to file detailed reports on taxes withheld from every staff member each time they run their payroll.

“Already faced with rising costs including wages and insurance, employers now face significant expense in terms of purchasing new software and staff retraining. This is not to mention the fact that large swathes of the country have no access to broadband which will be required to upload these returns on time or face interest and penalties from Revenue.

“While the current PAYE system was nearly 60 years old and reform is to be welcomed, Revenue must be held to their promise that the new system can be seamlessly integrated in to the payroll process. Otherwise small employers face more time spent on red tape which is time that should be focused on growing their business”, Mr Finnucane explained.

by Tom McCullough
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