PAYE Modernisation is the modification of the current Pay As You Earn (PAYE) system. It is the most significant reform of the PAYE system in Ireland since its introduction in 1960 and starts from the 1st January 2019. Employers no longer submit end-of-year payroll returns but are rather required to report their employees’ pay and deductions to Revenue each time they are paid. This will make it easier to deduct and pay at the right time the correct amounts of:

Income Tax

Pay Related Social Insurance

Universal Social Charge

Local Property Tax.


Key facts in PAYE Modernisation:

Payroll Revenue submissions will be in real time, this means the details are submitted to Revenue each time an employee is paid.

Backdating Payroll will not be available as penalties may apply.

Revenue payments due dates will remain the same.

Each Employee will need to be registered into MyAccount before registering as an employee and they will be responsible for the allocation of his/her own tax credits and updating any change in employment details.


The new system means that the Revenue will now receive payroll information in real time. Effectively this means that an electronic return must be submitted to Revenue each pay period, so submissions will be weekly or monthly. Quarterly submissions will now be filed monthly instead, however, payment due dates will remain the same. This will eliminate the use of forms P30, P35, P46, P45 and P60.


Revenue is making this change to ensure that they have the most accurate and up to date information on an employee’s tax status so that correct credits and cutoffs can be issued.


Corrections can be facilitated under the new system, but they may have adverse consequences. For example, they might give rise to interest or penalties in the event that they result in additional PAYE being due. In the past, corrections could be handled by adjusting the annual P35 but from 2019 this will not be possible.


In the following link, you can find more information about PAYE Modernisation 2019 –