Dáil Éireann Debate, Thursday - 17 May 2018
64. Deputy Michael McGrath asked the Minister for Finance if extra resources have been provided to the Revenue Commissioners for the upcoming change in PAYE reporting in 2019; the amount that has been spent and will be spent on upgrading the Revenue Commissioners' systems including changes to the Revenue Online service; if extra employees will be hired for these changes; and if he will make a statement on the matter. [21875/18]
View answer72. Deputy Michael McGrath asked the Minister for Finance the status of the Revenue Commissioners PAYE modernisation programme; the work being done to ensure that employers are fully prepared for the change; the benefits the new programme will bring from a Revenue Commissioners perspective; the impact on employees; and if he will make a statement on the matter. [21885/18]
View answerI propose to take Questions Nos. 64 and 72 together.
The implementation of the PAYE Modernisation project was announced in Budget 2017.
PAYE Modernisation represents the most significant reform of the administration of the PAYE system in over 50 years. Its objective is that employers, employees and Revenue will all have access to the most accurate and up-to-date information available relating to pay, tax, PRSI and USC deductions. This will ensure that the right amount is collected at the right time from employees, and that employers pay their correct liabilities when required. The new reporting requirements also minimise the scope for error and omission by employers.
Real-time data will assist Revenue in ensuring that employees get the full benefit of their entitlements during the year, in particular where an individual has a number of employments. Providing employees with access to the statutory deductions reported by their employer and an end of year income statement will improve the accuracy, ease of understanding and transparency of the PAYE system.
For Revenue, the availability of real-time information will inform its risk profiling, identification fraud and non-compliance activities, including assisting in the earlier identification of insolvent businesses. PAYE Modernisation will also provide the Department of Employment Affairs and Social Protection with more timely data regarding employments and PRSI contributions and provide greater assurance on the overall PAYE yield, which will enable better forecasting and policy decisions.
Revenue is undertaking a co-design approach to PAYE Modernisation. It has engaged with key stakeholders since the start of the project and continues to do so to ensure the design is optimised through their input. This will result in a more streamlined process and ultimately a reduction in the administrative burden for employers with pay and tax reporting being a by-product of their payroll process.
I am advised by Revenue that significant change management structures have been put in place for PAYE Modernisation. These include the following key components:
- Monthly meetings with external stakeholders that includes organisations like the Small Firms Association, ISME, IBEC, Irish Tax Institute, Chartered Accountants Ireland, Chambers Ireland, Financial Services Support Unit (under Department of Education) and accountancy firms.
- Monthly meetings with key staff representatives.
- Fortnightly or monthly meetings, as required, with the Payroll Software Developers’ Association.
- Revenue has presented on PAYE Modernisation at over 170 events arranged by representative bodies, payroll software providers, tax practitioners and the Irish Payroll Association (IPASS) throughout the country.
At the end of April 2018 Revenue issued a letter to 219,000 registered employers informing them of the upcoming changes and providing them with links to detailed content on the Revenue website . This letter also provided a link to sign up for regional seminars that will be run by Revenue in September 2018. To date over 3,300 employers and agents have registered their interest in attending these seminars.
Revenue is also undertaking customer service visits to employers to help them prepare for PAYE Modernisation. These visits will focus particularly on small employers who do not have payroll software or a tax agent to help them prepare for the new reporting requirements. Revenue will undertake a media and advertising campaign later in the year to maximise the level of awareness of the changed reporting obligations under PAYE Modernisation.
I am assured by Revenue that preparations for PAYE Modernisation are well advanced. There is currently c. 100 staff in Revenue dedicated to PAYE Modernisation working on regulations, ICT development, change management and business readiness. Revenue recently recruited 40 Clerical Officers specifically to scale and develop the employer helpdesk in advance of the new employer reporting requirements. It is anticipated that Revenue will also require c.35 temporary Clerical Officers in 2018/2019 to manage a peak in business arising from the transition to the new reporting requirements and the simultaneous reporting by employers of the 2018 end of year return.
I am advised by Revenue that total project spend to date is €9.2m. At this point, total project cost for the years 2017-2019 is estimated to be between €25-€30 million. It is important to point out that this expenditure is in the context of a system that brings in almost €1 billion every month to the Exchequer.
