Clare Daly (Dublin Fingal, Independent)
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72. To ask the Minister for Finance the position regarding the problems in the new information technology system of the Revenue Commissioners (details supplied). [8835/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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 I am advised by Revenue that the new administrative arrangements for PAYE (PAYE Modernisation) started on 1 January this year. These new arrangements do not affect the way income tax and other statutory deductions are calculated under the PAYE system, but do change the way employers report payroll information to Revenue. In most cases, there has been a seamless integration of the new real-time reporting arrangements into employers’ payroll systems without any impact on employees. Since its launch over 146,000 employers have successfully sent in real-time payroll submissions in respect of almost 2.6m employees.

Revenue is aware that when Department of Education and Skills (DES) reported their pay and statutory deductions details during January, it inadvertently included a ‘cessation of employment’ date in the payroll submissions in respect of some substitute teachers and other staff. This had the impact of stopping or reallocating those employees’ tax credits and rate-band entitlements, which in turn resulted in some over-deductions of tax from their DES salaries.

Revenue understands that the issue has now been resolved by DES for all newly engaged substitute teachers and other staff and the Department is continuing to address the problem for those who were impacted on in the earlier pay run/s. Revenue has also confirmed to me that it has ‘restarted’ the employments of all those concerned and placed them on the most appropriate tax basis, based on the information available. This has facilitated DES in refunding some over-deductions and Revenue understands that others will issue over the next pay run/s. Revenue is also continuing to offer every assistance, including technical expertise, to DES so that the problem can be resolved as quickly as possible.   

Revenue has further advised that any substitute teacher or other staff engaged by DES who have concerns that they are not receiving their full tax credit and rate-band entitlements can contact Revenue’s National PAYE Helpline at 01-7383636 to confirm the position.