What you need to know about PAYE Modernisation by AG Associates

PAYE Modernisation

PAYE Modernisation is by far the most significant reform of the PAYE system since PAYE was introduced in the 1960s.

PAYE Modernisation – What you Need to Know

What is it?

PAYE Modernisation came into effect on 1st January 2019.

In short, Revenue has gone real time. From now on, Revenue, employers and employees will have the most accurate, up to date information relating to pay and tax deductions.

So what does it really mean for you?

It means that every time an employee is paid, you as an employer, will be required to submit an online return via a payroll submission file to Revenue.

So whether your employee gets paid weekly, bi-monthly or monthly, you will submit information that is similar to the information that is contained on a P35 return.

At the end of every month, the employer will then be provided with a statement of account via ROS. This statement is required to be accepted by the Employer by the 14th of the following month.

What is the benefit?

The Revenue give a lot of reasons but the main one is to reduce your administration burden and greater reporting accuracy. Typically, in payroll, much of the reporting is done at the year end. This cumulative end of year reporting will not be needed as reporting accurate data will be done at each pay period.

After the initial couple of months, with help, we believe it will benefit you and your employees.

Here are some of the top questions our clients ask:

1. Is it applicable to my business?

Yes – it doesn’t matter what industry sector you are in, any business registered as an employer with Revenue Commissioners will implement the changes for PAYE Modernisation.

2. What are the essential steps I need to take?

All steps are essential but these three are top of the list:

Firstly, ensure you are registered as an employer with Revenue. It sounds simple but some clients are mis-registered or unregistered.

Secondly, submit your employee list to revenue. Again, while simple, errors have been found with other clients so it’s important you do this. Include your employees’ PRSI number aswell.

Thirdly, talk to an accountant. AG Associates door is always open. This is a big deal – we are already talking to businesses who are running into issues.

3. I have payroll software so I’ve nothing to worry about, right?

Yes and no. Software is just a tool so it does help. However, you need the right information going into the software.

4. What if I get it wrong?

For each breach of the rules, you will have to pay a €4,000 penalty. A breach can include anything from applying the incorrect tax credit to an employee to not having a correct list of employees.

Get Help with PAYE Modernisation

There is no need to do it alone. It’s important to be compliant with the Revenue. We can help you with advice, consultation, training and payroll outsourcing.

Here are three easy steps to get PAYE Modernisation Ready:

  1. Get in touch with us by calling us, emailing us or filling in the form.

  2. We’ll get back in touch to arrange a conversation about your payroll

  3. You’ll get practical ways to get you PAYE Modernisation compliant.


Payroll processing calls for an encyclopaedic knowledge of the ever changing PAYE, PRSI and USC systems,


We help you treat your people right.

Payroll is one of the most complex accounting functions. It ties two of the most important facets of your business—your staff and your accounting records. At AG Associates, we streamline your payroll system so your business runs on autopilot, month after month.

Outsourcing Makes Sense

Accurate payroll processing calls for an encyclopaedic knowledge of the PAYE, PRSI and USC systems, not to mention tedious and routine paperwork requirements. In addition, as your business grows, your payroll functions become ever more complicated. More often than not, it’s simply not feasible to manage it in-house.

Our payroll solutions are comprehensive, and provided at the most competitive rates in the industry.

Why outsource to AG Associates?

  • Reduce your operational costs

  • Stay compliant

  • Get peace of mind

Making sure your employees get paid on time with the right amount is essential to employee satisfaction. You have peace of mind that your employees will be paid the right amount on the right day when you outsource to AG Associates. All our staff are up to date with the latest legislation as is our software.

Payroll Training

Training is a great way to maximise the knowledge of your team. AG Associates can either keep you updated on the latest legislation or train you on your payroll software, or both.

Training takes place in your office so it’s cost effective and takes place where your employees work so they can implement immediately.

Our payroll services include:

  • Gross pay, net pay, holiday pay, emergency tax, staff deductions eg health insurance, pension etc
  • Preparation of weekly, monthly and annual payroll reports provided to you
  • Weekly & monthly wages preparation and pay slip preparation for your business
  • Payslip email option for your employees
  • EFT transfer for wages payments
  • Register your employees with Revenue and liaise with Revenue on your behalf
  • Completion and filing of periodic PAYE/PRSI returns to the Revenue on your behalf including the annual return to Revenue
  • Thesaurus Training and support for your business

PAYE Modernisation

PAYE Modernisation is the new way to report payroll to Revenue. It has completely revolutionised the way companies submit returns to revenue. You can see your payroll in real time.

Here are some of the changes made

  • Reporting schedule

    • Every time you pay an employee, you have to report the payroll to Revenue.

  • No more Ps

    • You will no longer issue P60s, P45s or P30s. An earnings and deductions certificate replaces all these and is available online through the Revenue’s website.

  • Tax Deduction

    • There is a new Revenue Payroll Notification – RPN – which gives you the necessary information to deduct the correct income tax, universal social charge and local property tax. It replaces the Tax Credit Certificate.

Let AG Associates Take Care of Your Payroll

Payroll is complicated but it need not be for your organisation. Let us take the stress out of it for you. Talk to us today to see how we can help.