What You Need to Know about PAYE Modernisation
We’ve had a number of questions recently about the PAYE Modernisation changes introduced by Revenue. To keep things simple, here’s a quick guide to what’s new, how it affects Irish businesses, and what steps you may need to take.
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What Is PAYE Modernisation?​
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The PAYE (Pay As You Earn) system was first brought in back in the 1960s. Since then, it hasn’t changed much - until now.
The Revenue Commissioners have introduced PAYE Modernisation, the biggest overhaul of the Irish PAYE system in over 60 years. The goal? To make tax reporting easier, more accurate, and more up to date.
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Key Changes for Employers
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The biggest change is this:
Employers now have to report pay and tax details in real time, every time they pay staff.
This means you no longer need to submit:
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P30s
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P45s
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P46s
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P60s
These older forms have been phased out as part of the update.
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What Taxes Are Affected?
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The new PAYE system helps ensure that the correct amounts are deducted for:
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Income Tax
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PRSI (Pay Related Social Insurance)
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USC (Universal Social Charge)
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LPT (Local Property Tax)
All of this happens in real time, every pay period.
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Is My Payroll Software Compatible?
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The good news is most popular payroll software used in Ireland is fully compatible with PAYE Modernisation.
That includes:
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BrightPay
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CollSoft
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Big Red Book
With the right software, real-time reporting is automatic - you don’t need to do anything extra once set up correctly.
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Still Using Manual Payroll?
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If you’re still calculating payroll by hand or using spreadsheets, this change may feel overwhelming.
Manually reporting pay and tax every pay period increases:
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The chance of errors
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The risk of non-compliance
That’s why Revenue strongly recommends switching to payroll software. It saves time, reduces stress, and helps avoid mistakes.
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What Should You Do Now?
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Check if your payroll system is up to date
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Talk to your accountant or payroll provider
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Consider switching to payroll software if you're still doing it manually
Making the move now will help you stay compliant and avoid issues down the line.
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Still Have Questions?
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Feel free to contact us - we’re here to help you navigate these changes smoothly and make PAYE Modernisation work for your business.