Irish Revenue has published eBrief No. 043/26 announcing updates to the Employers’ Guide to Pay As You Earn (PAYE), reflecting revisions to multiple chapters of the guidance.
The Irish Revenue has issued eBrief No. 043/26 announcing updates to the Employers’ Guide to Pay As You Earn (PAYE) with effect from January 2019.
The PAYE system is a method of tax deduction under which employers calculate and deduct income tax each time wages, salaries, or similar payments are made to employees. Employers must also calculate and deduct liabilities for Pay Related Social Insurance (PRSI), the Universal Social Charge (USC), and Local Property Tax (LPT). Employers are required to operate the PAYE system where payments exceed specified thresholds.
The updates relate to the Tax & Duty Manual Part 42-04-35A and cover revisions across numerous chapters of the guidance.
Changes include updates to Chapter 1 on determining the employment status of an individual. Chapter 2 has been revised to address compulsory registration by Revenue, separate registration numbers for the same employer, and payment procedures.
Chapter 3 has been updated in several areas, including guidance on gross pay and taxable pay with revised examples, employees’ superannuation contributions, PRSAs, and permanent health benefits. Updates also address share-based remuneration, non-cash payments, small benefits, the travel pass scheme, rent-free accommodation, professional body membership fees, and the provision of bicycles to directors and employees.
Chapter 4 revisions cover expense payments to directors, vouched subsistence expenses, motoring and bicycle expenses, work carried out on a voluntary and unpaid basis, the remote working daily allowance, and enhanced reporting requirements.
Updates have also been made to payroll administration guidance in Chapter 7, including maintaining the register of employees, corrections to payroll, post-cessation payments incorporating arrears of pay, real-time credits, and employee appeals relating to tax credits and tax cut-off points.
Further revisions appear in Chapter 9 on cumulative and emergency tax bases, and Chapter 11, which includes updated examples and tables explaining the operation of reductions in tax credits and tax cut-off points.
Additional changes include guidance in Chapter 12 on refunds arising from the cumulative system, including refunds of USC. Chapter 13 has been updated to clarify LPT deductions where an individual has two periods of employment with the same employer and to revise examples relating to the priority of LPT deductions in payroll.
Chapter 14 now includes updates on data quality, payroll submissions to Revenue, the ROS online form, return due dates, and end-of-year statements. Chapters 15 and 16 have also been revised to address matters such as new employees, Personal Public Service numbers, employees’ previous pay and tax information, retirement on employer-paid pensions, and employee transfers between branches.
Finally, Chapter 18 has been updated to reflect changes to quarterly remittances to the Collector General, the deletion of the fixed direct debit section, and updates to the variable direct debit process. Appendix 2, covering forms used by agents, and Appendix 5, listing commonly used terms, have also been revised.
