PAYE Modernisation (PMOD): Who Qualifies and What You Get
Learn how PAYE Modernisation changes how employers report payroll tax and how to ensure your employees receive the correct tax credits.
PAYE Modernisation is a system that moves payroll reporting from periodic updates to a real-time process. It ensures that tax information is shared with the authorities as soon as you pay your staff.
Who it's for
This scheme applies to all employers who pay staff.
What you get
You benefit from real-time tax reporting and automated employee tax credits. This means the system helps ensure tax credits are applied more efficiently through the payroll process.
What it costs you
There is no direct fee to use the system, but it requires you to integrate your payroll software with the official reporting platform. You must also ensure you meet all monthly submission deadlines to stay compliant.
The catch to know
While the system automates much of the process, employees often forget to update their personal revenue profiles. If they do not keep their information current, it can lead to incorrect tax deductions being taken from their pay.
How to apply
- Ensure your current payroll software is compatible with the real-time reporting requirements.
- Set up your connection to the official online portal used by the tax authority.
- Establish a routine to meet your monthly submission deadlines.
- Remind your employees to review and update their personal tax profiles regularly.
For more information, visit https://www.revenue.ie