The Revenue Commissioners have recently issued a tax briefing outlining employers’ obligations to keep, maintain and produce, in paper or electronic format, a register of all employees. While this obligation came into effect under the Income Tax (Employment) (Consolidated) Regulations 2012, the issuing of this tax briefing in June 2014 would indicate that the Revenue Commissioners are intending to take action in relation to the inspection of Registers of Employees.
Revenue Officers will from time carry out pre-arranged or unannounced visits to business premises to verify various aspects of taxation compliance. In previous years we have seen the Revenue Commissioners calling to retailers and other business to verify the rate of VAT applied, through the inspection of till systems. It would seem, from the recent tax briefing the Register of Employees is becoming a new aspect of such inspections.
1. What details are required to be maintained in the Register of Employees?
A Register of Employees must include the following details:
- The name, address and Personal Public Service Number (PPSN) of each employee
- The date of commencement of employment of each employee
- The date of cessation of employment of each employee, where relevant.
It is important to note that the above register must include the records of all employees, including temporary, part-time or casual employees.
2. Where should the Register of Employees be maintained?
The Register of Employees should be maintained at either
- The normal place of employment of the employee or
- The main place of business of the employer
For businesses that have more than one location, the main place of business, for the purpose of retention of the register, is determined by where payroll records and staff records are held, for example a business’s head office. If your business has more than one location, a Revenue Officer may only visit one branch of your business and may request an extract of your Register of Employees that will relate to just that one branch.
Alternatively, if you outsource your payroll function to a tax /payroll agent or you prepare your payroll on a software package the onus remains on you, the employer, to keep and maintain the Register of Employees at your normal place of business. If your business does outsource its payroll function it would be advisable to obtain a copy of the register on a regular basis from your tax/payroll agent.
3. Implications of failing to Keep a Register of Employees
If a Revenue Officer visits your premises they may request that the Register of Employees be produced, within a specified period of time. If, as an employer, you fail to produce your register the following penalties may be imposed:
- Failure to keep and maintain a Register of Employees carries a penalty of €4,000.
- If your business is a limited company, the secretary of the company will be subject to a separate penalty of €3,000.
- If you fail to produce any records which the Revenue Officer requires for the purpose of his/her enquiry you will be liable to a penalty of €4,000.
It is important to keep your Register of Employees up to date and to include all employees, as an incomplete register carries the same penalty as that outlined above for failing to keep and maintain a Register of Employees, i.e. €4,000.
4. Prepare your Register of Employees Today
As an employer you will already be fulfilling your obligation to register your employees with the Revenue Commissioners for PAYE purposes. The details required to be included in your Register of Employees should be information which you will already have on file in your payroll records and therefore a Register of Employees should be easily prepared.
It would be advisable to review your payroll records and compile your Register of Employees so you are prepared, should a Revenue Officer call to your business.
If you have any queries in relation to your Register of Employees or any other PAYE/PRSI matters please do not hesitate to contact a member of our team.