Many companies and employers remain unprepared for changes to the PAYE system which come into law today, a payroll specialist firm has warned.
The modernisation of the PAYE system means employers will need to calculate and report their employees’ pay and deductions as they are being paid.
Revenue says the new system will make it easier to deduct and pay at the right time the correct amounts of income tax, pay-related social insurance, universal social charge and local property tax.
The tax body said modernisation would streamline business processes and reduce the administrative burden on employers.
However, some companies and employers remain unprepared for the “revolutionary changes concerning the method of payroll processing”, according to contractor accounting firm Accounting Pro.
“Consequently, increased research, communications, and legal awareness will be required for private sector employers in order to meet these government regulations,” said the firm’s administrator Kieran O’Callaghan.
Accounting Pro said there were a number of benefits that will take place as a result of the new Paye modernisation program once firms became familiar with it.
However, Mr O’Callaghan warned: “Small employers, ad-hoc employers and employers who use a manual payroll system may struggle to make correct and timely payroll submissions. This may lead to a Revenue compliance intervention and potential penalties for the employer.
Meanwhile, a body representing restaurants has reiterated its criticism of the rise in the Vat rate for the industry from 9% to 13.5%.
Chief executive of the Restaurants Association of Ireland, Adrian Cummins said it would lead to closure of restaurants and therefore loss of jobs.