The way that payroll systems interact with Revenue is due to change in January 2019. All businesses will be affected by the changes and SMEs may need some assistance to upgrade their systems to comply with the new way of reporting payroll information. We will get you started with some information on how Sage payroll will change.
WHY ARE THE CHANGES NECESSARY?
The Revenue Commissioner’s Niall Cody said recently that the modernising of the system “represents an important step in the process of continuous improvement in service, compliance and efficiency in our administration of the tax system”.
The existing PAYE system was introduced in 1960, when life and work were very different from what they are today. In 1960, a job was for life and working hours were structured around a nine to five working day with most employees working away from their home. In 2018, the availability of the internet and the recognition by employers of the need for work-life balance, means that companies are offering more flexible working days and hours.
Perhaps it is time for a change in the administration of the tax system also!
WHAT WILL CHANGE EXACTLY
CHANGES IN SAGE SOFTWARE
The following is a practical summary of changes in Sage Version 21.1: Sage Payroll (Micropay) Users
One of the first steps in preparing for Payroll modernisation which comes into effect on 1st January 2019 is to upgrade to Sage Payroll (Micropay) version 21.1.
Version 21.1 provides some new important options
Where to find these options in Sage Payroll (Micropay) Version 21.1
Employee list for Revenue: Reports – Payroll Reports – Company – File Exports – Employee List to ROS
Record tax agent details: Company/Payroll – Tax agent details
Record employee employment ID: Employee details – all tabs
Record exclusion orders for PAYE: Employee details – Tax/USC tab – Exemptions & Exclusions
Record directors and director type: Employee details – Personnel tab – Director
Mark employee as PRSI exempt: Employee details – Tax/USC tab – Exemptions & Exclusions
Validate Payroll Data: Reports – Validate Payroll Data