1. Common payroll submission errors
Revenue has published a list of common errors in payroll submissions which have been made by employers since the 1 January 2019 go-live date. These include:
- Payroll data being mistakenly sent to Revenue more than once, which can incorrectly inflate the declared liability and raises the risk of unnecessary Revenue interventions
- Creation of duplicate employments for the same employee leading to an overstatement of a liability owing to Revenue
- Payroll submissions failing the validation process and not being corrected
Invalid payslips cannot be included in the monthly statement when it is issued by Revenue by 5th of the following month, creating a requirement to correct the Statement before the statutory return deadline on 14th of that month
- Employments being erroneously terminated by a cessation date being incorrectly included for employees in payroll submissions
- The most up to date Revenue Payroll Notification 'RPN' not being utilised when running payroll
- Emergency Tax being applied where an RPN is available but not applied
- Incorrect processing regarding USC, e.g. No USC deductions where the employee is not USC exempt or USC deducted where the employee is USC exempt
- Liabilities being paid twice in error
Any errors in Payroll submissions, in the above list or otherwise, should be corrected before the statement becomes the statutory return on the 14th day of the month following the payroll month.
2. Data quality
Revenue is monitoring all data included in submissions received in Real-Time, and is actively engaging with employers where Revenue believes submissions are inaccurate or incomplete. Revenue has confirmed, that for a submission to be complete, all data points including information points which do not affect the tax liability must be accurate and complete for all employees. Revenue has assembled a specific team of resources to analyse the quality of submissions; this team is expected to conduct site visits.
This underlines the need for employers to ensure that all internal and external stakeholders to payroll are aware that complete, accurate and timely data provision to payroll is key to successful payroll compliance under RTR.
In a recent eBrief, Revenue stated it will continue to assist employers who are experiencing genuine difficulty in complying with the new PAYE requirements; however, it also issued a warning to employers who fail to engage with Revenue or have persistent breaches of the PAYE Regulations.
Such employers are liable to be issued with a €4,000 penalty per offence. As such, employers should be aware that they need to make their best attempts to ensure that their payroll reporting is as accurate as possible in Real time, otherwise penalties may be applicable.