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.
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.
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.
Notwithstanding the above, if your organisation has identified the need for potential ‘year-end’ or other adjustments, PwC can assist through the following:
For any employer reviewing their position, our bulletin from December 2018 provides key details on processing and reporting of several remuneration element types, including:
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