Real-time Reporting: an update for employers and payroll functions

05 July, 2019

Six months on

PAYE Real-time Reporting (RTR) came into effect in Ireland on 1 January 2019. This bulletin provides insights into areas of current Revenue focus, as well as how employees interact with RTR.

A professional woman approaches a male employee at his desk in a bright office.

Areas of current Revenue focus

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.

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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.

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3. Penalties

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.

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How employees interact with RTR

myAccount and visibility of employer-filed PAYE details

Since mid-May 2019, employees have been able to view period to period and year to date PAYE data reported to Revenue by their employer on Revenue's myAccount platform:

  • Gross pay
  • Pay for income tax
  • Income tax paid
  • Pay for USC
  • USC paid
  • Employee PRSI-paid
  • LPT deducted
  • Detailed information in relation to deductions, reference numbers, etc.
  • End-of-year or end of employment statements, which replace P60 and P45s for 2019 et seq.

If you haven't already done so, now is the ideal time to communicate with your employees about the changes which RTR brings and the impact for them. Proactively preparing and implementing a communications strategy can cut down on reactive time dealing with repetitive queries.

Payroll Services: your trusted partner

PwC Payroll Services' protocols are specifically designed to avoid the kind of payroll submission errors raised by Revenue. We continue to liaise with the Revenue RTR core project team through attending stakeholder engagement meetings and scrutiny of published documents.

Planning during 2018 for the requirements of RTR and our previous communications with our clients has resulted in PwC Payroll Services' strong service and support to clients on RTR in 2019 so far.

Please do not hesitate to contact Jess, Alan or any of the payroll services team if you have any queries in relation to Real-time Reporting or our payroll services to you.

Contact us

Keith Connaughton

Partner, PwC Ireland (Republic of)

Tel: +353 1 792 6645

Jessica Webbley-O'Gorman

Senior Manager, PwC Ireland (Republic of)

Tel: +353 1 792 6518

Alan Greene

Manager, PwC Ireland (Republic of)

Tel: +353 1 792 6190

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