Dáil Éireann Debate, Tuesday - 18 December 2018
151. Deputy Thomas Pringle asked the Minister for Finance the way in which employees who do not have Internet access will be able to access end-of-year statements once changes by the Revenue Commissioners are carried out by 2020 and the P60 and P45 forms are no longer in use; and if he will make a statement on the matter. [53242/18]
Amharc ar fhreagraI am advised by Revenue that the P60 and P45 forms are important components of the current PAYE system. The P60 is a statement of the employee’s earnings and statutory deductions for a year while the P45 sets out earnings and statutory deductions when an employment is ceased.
With effect from 1 January 2019 the administration of PAYE is undergoing significant change with the move to real-time reporting under the PAYE Modernisation programme. These changes will bring improved accuracy and transparency for all stakeholders, including employers, employees and Revenue, while also significantly streamlining the entire administration process. The streamlining will include the abolition of the current employer reporting obligations via P30, P35, P45, P46 and P60 forms.
Under the new reporting arrangements, the P60 form will be replaced by an online End of Year Statement, which will be available in early 2020 (in respect of the 2019 tax year) and will detail the employee’s pay and deductions, including credits and reliefs etc. Similarly, there will be no need for an employer to provide an employee with a P45 form because the pay and tax details and date of leaving will be included in the (employer) payroll submission. This information will then be automatically updated by Revenue to the employee’s record. The real-time information will also be made available to the Department of Employment Affairs and Social Protection (DEASP) for processing benefit claims.
In circumstances where a person is unable to access Revenue’s online services for whatever reason, s/he will be able to request hard copy details of the required information by contacting Revenue directly. Finally, I am aware that Revenue has very actively communicated the changes associated with PAYE Modernisation, including in respect of the P60 and P45 Forms. Further information in this regard is available at www.revenue.ie/en/jobs-and-pensions/paye-modernisation-for-employees/index.aspx which may be of interest to the Deputy.
