Quick Guide to RTI for Ireland
Ah Ireland, the land of saints and scholars. They’ve been pretty ahead of the curve for the past few decades - voting in gay marriage, the smoking ban, two badass lady presidents, white pudding, the list goes on. But there’s one area where the UK has outdone Ireland in and that is RTI which we rolled out years ago. Ha, take that, Ireland!
Known as RTI in the UK and PAYE Modernisation in Ireland, this is the most significant change made to PAYE since its introduction in 1944. It has basically made reporting important payroll information much more efficient and accurate by doing away with end of year reports (P30s) and having this information submitted every time you paid employees. Aka, in real time = RTI = Real Time Information. Exactly what it says on the tin!
Now Ireland are following in the UK’s footsteps!! I want to take a look at what sort of changes Irish companies are looking at in order to prepare (and facilitate) the changeover to RTI, or the longer version ‘PAYE Modernisation’ as it’s known in Ireland.
While this will only be a good thing for all parties involved, the employers are the ones who are going to be stuck with the giant pain in the keister of facilitating all these changes whilst remaining Revenue compliant (Ireland's version of HMRC). At a glance these are:
- Instead of the end of year P35, employers are required to submit a payroll submission for each employee every time, after every payroll run.
- New PC2 format and process.
- P60s replaced by a final pay and deduction statement for the year.
- Due to the new processes or reporting there will be no more P45s or P46s! Membership of the payroll club has been revoked, soz guys.
No that wasn’t Storm Charlie you just heard, that was the collective sigh of every employer in Ireland who has realised they have to do all this extra work. I’m not going to sugarcoat it, it’s quite a bit extra, especially for small businesses. But ONLY if you are not using a payroll software, in particular, one that caters for and simplifies the PAYE Modernisation process.
Fortunately, there are cost-effective solutions, such as BrightPay Ireland and Thesaurus Payroll Manager that offer easy to use payroll packages with unlimited employees, free support and will provide PAYE Modernisation functionality. BrightPay have the added bonus of having been through this once already with the rollout of RTI in the UK so have been there, done that and submitted the payroll, honey *finger snap*. They also have webinars on the subject and you can book a demo through their website at https://www.brightpay.ie/pages/payemodernisation/.
Continuing forward with a manual process could lead to errors and increase the risk of non-compliance. It would also be very time consuming to continue with a manual process. But by using an award-winning payroll software such as BrightPay, employers will save time by streamlining their payroll processing and real time reporting. Which leaves them to sit back, relax and enjoy the benefits that PMod will no doubt bring to Irish employers and employees alike.
Written by Aoibheann Byrne | BrightPay Payroll Software