FARMERS who employ people on their farms will find that their tax system will become a tad more complicated from January 1 next when PAYE modernisation clicks in.
Tom O’Farrell, Partner at Ifac’s (Irish Farm Accounts Co-operative) accountancy office in Athenry, said that farmers – even if they only employed one person – must comply with the new rules from the first day of 2019.
“We are advising all farmers to ensure that they are adhering to these new rules by preparing now. In order to be fully compliant, it is important to check that you are operating PAYE correctly as you will no longer have the luxury of correcting errors on the P35 at the end of the year,” said Tom O’Farrell.
He added that currently, many employees receive incorrect tax credits, because Revenue only gets payroll information from employers once a year. However, from the start of next year, employers will submit payroll information to Revenue in ‘real time’ which means Revenue can allocate correct tax credits and employees will avoid overpayment or underpayment of tax.
Tom O’Farrell said that farmers as employers will now have to provide details of each employee’s pay and tax deductions to Revenue on or before every pay date – this will need to be done before payslips are finalised.
“It will include information on PAYE, USC and PRSI. The information is submitted to Revenue via a Payroll Submission Request (PSR). Your payments will not change — for example, if you currently pay monthly or quarterly, this remains the same.
For more, read this week’s Connacht Tribune.
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