RTR: Implications at ‘year-end’ when there is no ‘year-end’ process

20 November, 2019

The closing months of 2019 are a good time to consider ‘year-end’ under Real Time Reporting (RTR) for employers and employees.

For employers

Since the introduction of RTR on 1 January 2019, Revenue now receives full details of payments and deductions per employee via payroll submissions made on or before each pay date.  

In previous years, P35s reported employees’ earnings and deductions to Revenue. This supported the allocation of P30 monies to relevant employees.  But Real Time Reporting removes the need for P35s. As such, there is no requirement for any end of year employer PAYE reporting to Revenue. 

For employees

P60s previously provided employees with a summary of their employment earnings information. This was based on employers’ reporting to Revenue. Since May 2019, employees are now able to view these details included via MyAccount. 

In addition, from 15 January 2020, employees will be able to access an annual summary of their 2019 employment earnings. Hence, P60s are no longer required.

Common payroll practice

Revenue has said that: “‘For some employers, the focus on the end-of-year reporting may have contributed to in-year payroll practices which are not fully in line with PAYE regulations. The RTR regime will make these visible and such processes will need to change.”

For example, under Real Time Reporting, Revenue recommended that benefits such as company cars be reviewed at least quarterly, rather than waiting for a year end review and, where necessary, making an adjustment.

Does your organisation have adjustments to make?

Notwithstanding the above, if your organisation has identified the need for potential ‘year-end’ or other adjustments, PwC can assist through the following:

  • Expert employment tax advice in relation to risk, process improvements and calculation of adjustments
  • Responsive payroll services support in relation to processing and reporting and identified adjustments

For any employer reviewing their position, our bulletin from December 2018 provides key details on processing and reporting of several remuneration element types, including:

  • BIK and notional pay;
  • Share-based remuneration;
  • Expenses
  • Payments to directors;
  • Shadow payrolls; and 
  • Holiday pay and advance payments.

Contact us

Kathryn Brady

Director, PwC Ireland (Republic of)

Tel: +353 1 792 6428

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