November 8, 2018
PAYE Modernisation

There is no doubt there will be a significant impact on agricultural contractors when PAYE Modernisation, comes into force on 1st January 2019. Increased administrative costs and the requirement to report to Revenue on a weekly basis will be onerous for many contractors who are stretched to the limit time wise.  That said, PAC Ireland advises its’ members to prepare in advance.  Ensure that personal details and PPSN of permanent employees are accurately recorded and uploaded onto the ROS as soon as possible; those using payroll software should upgrade to the latest version.  Contractors who outsource their payroll are still responsible for compliance and must communicate with their provider.  One area of worry expressed by PAC members is cash flow; but this should not be an issue as payment to Revenue will still be once a year.  Another concern is the use of casual employees without fixed working hours.  When taking on casual workers contractors must get the persons PPSN and they will also need to be registered for PAYE.  If both these criteria are not met then the worker will pay emergency tax at the rate of 40% on all income.  Casual employees can work for you intermittently but must be signed off your payroll if they have not been paid for a period of three months.  The new system applies to all employers in Ireland and unfortunately is something we have to work with.  PAC is here to help and Members requiring information on PAYE Modernisation can ring the office on 090 6437518.