The Institute is calling on all employers to engage with Revenue in advance of the fast approaching 1 January 2019 implementation of PAYE Modernisation. As at the end of September it appeared only some 11,000 employers have provided Revenue with the List of Employees which is critical to the smooth commencement of the new system. According to Chartered Accountants Ireland Director of Public Policy and Taxation Brian Keegan, there is a real risk of some employees suffering harsh emergency tax in the January payroll – the first pay cheque after Christmas – unless these lists are right.

Revenue’s request to employers to provide these lists is presented by way of a banner on the ROS homepage screen for both employers and their tax agents. It is important to note that if there is a difference between the employer’s list as submitted and Revenue’s record then Revenue will take action.

For example, employees registered as working for that employer on Revenue’s records but not included on the employer’s List of Employees will be ceased on Revenue’s records. The cessation date will be recorded as the date the List of Employees is received by Revenue. This will mean that a Revenue Payroll Notification (RPN), which is the equivalent of the current P2C, will not be available for that employee in 2019.

We understand from discussions with Revenue that the employee will receive a revised Tax Credit Certificate (TCC) which will tell them they have been ceased on their employer’s payroll records; however, such employees may not appreciate the significance of the revised TCC.

Revenue published a manual on the List of Employees, the manual provides details on the information to be included on the list, how to upload the list, how Revenue will process the information and the action that will be taken.