Dáil Éireann Debate, Friday - 7 September 2018
555. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the supports for SMEs by her Department and agencies under her remit, such as LEOs, to help small businesses through training and so on to transition to the PAYE and PRSI payroll reporting requirements from January 2019; and if she has submitted a submission to the Revenue Commissioners or the Department of Finance in this regard to provide support to SMEs. [36917/18]
View answerSince October 2016, when the then Minister for Finance launched the PAYE Modernisation project in his Budget speech, Revenue has worked extensively with all relevant stakeholders in a co-design approach to ensure the new reporting system reduces the administrative burden on employers to the greatest extent possible. The move to real-time reporting is the most significant change to the PAYE system since its introduction more than fifty years ago. The modernisation programme will bring improved accuracy and transparency for all stakeholders, including employers, employees and Revenue, while also significantly streamlining the entire administration process.
The new real-time reporting requirements will simplify the PAYE reporting process for employers and their agents by eliminating various forms (e.g. P.30, P.45, P60) which are currently required. For the most part the new reporting requirements will seamlessly integrate with the existing payroll process without any additional burden on the current employer. Revenue is working very closely with the Payroll Software Developers Association to design the employer payroll reporting requirements.
Employers who do not use payroll software will be able to comply with the requirements by completing a simple online form on ROS, the data required is in line with what they are currently required to provide on an employee’s payslip under employment law.
I am assured that Revenue is also conscious of the very small minority (0.3%) of employers who are unable to use online services. These would typically include situations where internet access is insufficient, or where the employer is elderly or suffers from a disability. Such employers can apply to be excluded from the obligation to submit PAYE returns online and Revenue will make specific arrangements to facilitate manual reporting using customised stationery, to record and submit employees’ payroll information in hard copy.
One of the main advantages of the new real-time reporting arrangements is that employees, employers, and Revenue, will always have the most accurate and up-to-date information available in respect of pay and statutory deductions. For example, in the context of an increasing variety of employments, where people change jobs more frequently and multiple concurrent employments are more commonplace, the availability of this information will assist Revenue in ensuring that each employee gets the full benefit of her/his entitlements each year, particularly if s/he has more than one employment. The current annual (P35) system does not facilitate this and can leave employees at a disadvantage because information is captured on an annual (historic) basis, rather than in real-time.
In terms of communicating the message to all employers, Revenue has been actively engaged in information briefing sessions nationwide. Since January 2017 to date, Revenue teams have presented at over 240 PAYE focused events for a variety of stakeholders including the Small Firms Association, The Irish Farmers Association, Chartered Accountants Institute, Irish Taxation Institute, Age Action, Payroll Providers, Tax Agents and many other representative bodies.
I also understand that Revenue has written to every registered employer in the country and is currently engaged in a large number of regional customer service visits to assist employers with their preparations for PAYE Modernisation. Revenue Seminars are planned for September and October as well as an extensive advertising campaign.
My officials have engaged with Revenue on this matter and will continue to monitor the impact of the new requirements on businesses of all sizes. In 2017, the Revenue Commissioners gave a presentation and hosted a question and answer session for members of the Advisory Group on Small Business (AGSB) on the new PAYE reporting requirements. The AGSB (chaired by Minister Breen) is the principal conduit for SMEs and their representative groups to interact with my Department. It is envisaged that Revenue will attend future meetings of the AGSB for further discussions and to receive feedback on the new system.
