Employers have just three months until Real Time Reporting (RTR) comes into effect on 1 January 2019 in respect of the application of Pay-As-You-Earn (PAYE) to their employees’ salaries. If they have not already done so, employers should be considering the implications for their business of PAYE Modernisation.
RTR will require employers to submit the details of each employee’s pay to Revenue on or before each pay day. An accurate and detailed breakdown of all pay, deductions and tax must be disclosed in respect of each employee.
In this article, John Curry and Rachael Dillon of KPMG’s tax technology and people services teams look at the implications of PAYE Modernisation for employers’ current payroll processes, systems and policies.
John and Rachel identify payroll features that are likely to present some of the greatest complexity for employers seeking to ready themselves for PAYE Modernisation. These include businesses which have multiple payrolls; weekly, fortnightly and monthly payments; a high volume of employees with other employments; a high volume of joiners and leavers; a high volume of internationally mobile employees; a variety of benefits and variable bonuses for employees as well as those who pay share based remuneration.
John and Rachel consider what employers need to do now in order to prepare in the short time left.