25 September 2018
Is your software ready for PAYE Modernisation?
PAYE Modernisation comes into effect in 2019, but now is the time to act and get your processes in order before the January deadline.
PAYE Modernisation is a huge upheaval to the current system, so it is important to start planning in advance to ensure a smooth integration into real time reporting. Changes will affect the correct payment of: income tax, pay related social insurance, universal social charge, and local property tax.
This might seem like a lot of hassle right now, but the benefits should make this worthwhile, these include:
- Seamless integration into payroll
- Minimal employer costs to comply
- Abolition of P30s, P45s, P60s and end of year returns
- Time savings
Your employees will also benefit from simplified online services, more transparency and more accurate data. So it’s a win-win.
Is your software ready?
These changes don’t have to be an admin nightmare. The right payroll software can sort everything for you. If your software is compliant with the new changes, you can access Direct Payroll Reporting. This allows payroll software to communicate seamlessly with Revenue Online system (ROS) and exchange the required information automatically.
If you don’t have compliant software, information will need to be recorded and tracked manually, and then the relevant forms will need completing through ROS. To avoid this extra hassle, now might be the best time to consider upgrading your software solutions.
What does your software need to do?
There are four key actions your software needs to perform to follow the new rules set out by PAYE Modernisation:
1. Request up to date PAYE details and notify Revenue of new starters. 2. Creation: Create accurate files for submission every single pay period. This is the best possible way to avoid errors, delays and rejections from occurring. 3. Validation: Your software needs to validate the data it is submitting against Revenue requirements. 4. Submission: Submit all the relevant information direct from your payroll and receive confirmation and summary values back from Revenue.
Using compliant software ensures that your data is accurate, and automated to save you time. But even better than that, an audit trail is created helping you to track each process and stay compliant with other legislation like GDPR.
MHR’s iTrent system has been fully configured for all the changes relating to PAYE Modernisation through a long process of assessment, development and testing to ensure that you can process information easily following the new system.
iTrent offers an integrated system which helps you to produce, validate and submit your new PAYE data to Revenue for each pay run. Our software allows you to request summary PAYE values from Revenue for accepted submissions, plus we notify Revenue of any new starters and request their latest PAYE details.
With an automated Payroll process compliant with the new changes, your Payroll team can stay ahead of the curve and start following the changes with ease from January 2019, avoiding delays and the possible introduction of fines. Automating your processes has the potential to save €1,000s by reducing admin costs, improving efficiencies and allowing your organisation to focus on more critical tasks.
The team at iTrent have been mastering Payroll for over 30 years, and have a wide bank of knowledge when it comes to implementing legislation changes. Our team of experts would be happy to offer advice and suggest improvements for your company if you’re unsure of the best way to embrace the changes.
What do you need to do?
PAYE Modernisation is the perfect excuse to streamline your business processes. Carry out an internal audit, analyse ways to improve efficiencies, reduce costs and look at how to work smarter to engage your employees. By looking where you can automate your processes and remove the burden of admin, you’ll get a lot more done in the work day and probably please your employees too by taking away the mundane tasks. There are plenty of existing examples of why automating certain Payroll and HR processes can benefit organisations, so why don’t you see how it can benefit yours?
We have put together a guide to PAYE Modernisation which covers the key steps you need to take in order to be compliant. The guide covers best practice and what you need to tell your employees. Head over to our dedicated PAYE Modernisation page below to grab your free copy.