PAYE modernisation compliance drive predicted

Farm businesses have been warned to expect fines of thousands of euro in 2020, if they are not compliant with the PAYE modernisation which was introduced 12 months ago, the biggest change in the Irish PAYE income tax system since the 1960s.

Revenue spent much of 2019 assisting employers with the new regime, and it will turn its attention to compliance this year, according to Ifac, the farming, food and agribusiness professional services firm.

Mary McDonagh, head of payroll services at Ifac said: “In the year ahead, we expect to see breaches being addressed promptly, leading to more fines and an increase in Revenue audits.

“Simply by failing to have an up-to-date tax certificate or revenue payroll notification for one employee can result in a substantial fine of €4,000.”

According to Ifac, many have already received final demand letters for the first time ever, due to the collector general automating their systems, and being able to identify delays related to the payment of PAYE/PRSI/USC by employers, as part of PAYE modernisation.

PAYE modernisation also includes real-time reporting, meaning that every time an employee receives a payment, Revenue is informed on or before the day of payment,

Revenue payroll notification and a payroll submission request have replaced the P45 and P35 forms.

The variable direct debit was also introduced.

Revenue spent much of 2019 assisting employers with the new regime, and it will turn its attention to compliance this year, according to Ifac, the farming, food and agribusiness professional services firm.