October 2019 One year later… Can Welcome PAYE Modernisation be to today’s webinar considered a triumph? Paul Byrne Managing Director – Thesaurus Software Questions Recording Email Ian Jenkinson Senior Sales Executive – Thesaurus Software Sinead Sweeney Handouts CPD Accredited PAYE Modernisation Change Manager – Revenue 1
October 2019 Part 2: Part 1: One year later… Can How BrightPay Connect’s One year later… Can PAYE Modernisation cloud platforms can improve PAYE Modernisation be be considered a triumph? your efficiency considered a triumph? • PAYE Modernisation: The story so far • Common mistakes & how to avoid them • Part 3: Non-compliance & penalties • One year on - was it a success? Revenue Presentation Much more up-to-date Why was PAYE information for Revenue Modernisation Back to Basics More accurate tax credits for introduced? employees Employers’ PAYE liabilities are known in read time 2
October 2019 Similar to the old P2C files A Payroll Submission Request is What is an RPN What is a PSR similar to a mini P35 (Revenue Payroll (Payroll Contain tax credits and cut Needs to be submitted on or off points for all employees Notification)? Submission before each pay run Can be easily retrieved before Request)? In most cases, a submission is each pay run required either weekly or monthly Direct integration allows Employers are required to notify How does payroll What does it employers to connect directly Revenue of new employees to Revenue’s system software help? mean for new An RPN will alert Revenue of the An RPN can be retrieved from employees? employment and an RPN will be Revenue at the click of a button made available A PSR can be submitted Similarly, by including a leave date directly to Revenue from on a PSR, it will alert Revenue of a within the payroll software leaver 3
October 2019 Revenue issue a monthly statement How does an to employers based on the submissions made employer know The story so far… Employers don’t need to manually the amount due accepted the statement to Revenue? Payment due dates and method of payment remain the same The story so far… for employers 172,000 EMPLOYERS Revenue integration – one click submissions to Revenue 3.8 MILLION Overall reduced workload required each pay period & more time savings PAYROLL SUBMISSIONS Eliminated ‘P’ forms - P60s, P45s, P46s, P30s and P35s no longer required 2.6 MILLION EMPLOYEES 4
October 2019 The story so far… for accountants The story so far… for employees Rollout coincided with P35 deadline for 2018 Employee tax records - more accurate tax year and VAT returns deadline Less under or over payment of tax Issue of educating clients to do things differently - e.g. net to gross Maximum use of their entitlements Full visibility via myAccount Timeliness and accuracy of the information given by clients has generally improved Statement of Income & Deductions Improved further by client payroll entry and approval with automated audit trail? The story so far… for manual users Common Mistakes Up to 10% of employers still processing payroll using a manual system & Challenges Very time consuming, cumbersome and prone to error These employers should be taking advantage of using either the services of a payroll bureau or payroll software 5
October 2019 Challenges for Software Providers Top 10 mistakes seen by Revenue Duplicate Payroll Employment Unable to test Payroll data being Employers failing employments submissions record ceased for some scenarios sent to Revenue to apply the most for the same failing validation employees more than once up-to-date RPN employee process in error Multiple upgrades after initial release Employees being Incorrect ‘Gross Pay’ shown No USC deducted Employers paying taxed on an operation of as less than ‘Pay for an employee their tax liability emergency tax emergency tax for Income Tax’ not USC exempt twice in error basis Unexpected challenges, e.g. regional settings Manual Changes on Digital Certificates ROS by Employers Issues with networks – an administrator cert is needed Changes made manually don’t sync back to the payroll software New certificate issued – not actually activated until the following day Duplicate employments for the same employee 6
October 2019 Incorrect details Employers with on the RPN multiple branches Some problems due to Revenue being Additional PREMs required where there unaware of certain situations are multiple branches Incorrect details included on the RPN Without an additional PREM, the PSR or mistakenly had employees on shows up as duplicate line item ID emergency tax Revenue Slowtime / Downtime Confusion over pay Revenue slowtime meant that Users can check the Revenue periods PSRs were being sent but no reconciliation for proof of response from Revenue successful submission The pay date is when the payment is actually made The concept of the pay date caused some confusion 7
October 2019 Payroll Backups Old XP Computers It’s very important to take backups of payroll data with PAYE Modernisation Old Windows XP computers not compatible with new security measures Difficult to backdate the payroll data so that the periodic submissions are correct These security measures are needed for the Revenue integration to work Free cloud backup to seamlessly backup your payroll data to the cloud Non-Compliance & Penalties FIXED PENALTY Non-compliance Employers should rectify mistakes to ensure it doesn’t affect future payrolls € 4,000 Per Breach of the & penalties PAYE Regulations Early action can also reduce the possibility of Revenue intervention FIXED PENALTY A constant pattern of corrections or late submissions – Revenue may take corrective action € 3,000 Imposed on the company secretary 8
October 2019 Can it be considered a success? Challenges vs. Benefits Can it be considered PAYE Modernisation UK System Challenging few months for everyone, but starting to a success? Correction submissions Cumulative submissions experience the benefits Digital certificates Password Authentication One more challenge Big Bang approach Voluntary Pilot Year No issues with the transition into the new tax year and Changes via multiple sources Changes via payroll only employee’s year end statements How BrightPay Connect’s cloud payroll platform can improve your efficiency Book a BrightPay Connect Demo 9
October 2019 Revenue Questions Presentation & Answers 10
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