Digitalisation of payroll taxes and Covid 19
It’s not very often I delve into the subject of taxation. I guess that’s because like everyone, it’s not something I like paying, but I have to 😀.
In recent weeks in Ireland, there has been some debate in the media about emergency payments made by our government to people who were made unemployed temporarily as a result of Covid 19. Our government took a quick and broad decision to pay everyone affected €350 per week until they returned to work.
Some anomalies arose – for example part time workers got more cash for not working. This was inevitable given the quick nature of the decision, but quick decisions are needed in a crisis
So should the Irish government be worried about cash being misspent on this? Simply, no. Why you may ask? Well, Ireland’s Revenue Commissioners are really good at digitalisation. Since January 2019 for example, all payroll data gets sent to them (as the state’s tax authority) at the end of each month. They thus have gross pay, taxes deducted and net pay for every employee in the country. This, in time, could be easily contrasted with the emergency €350 paid to see if some were paid too much. This would not be possible at all without digitalised payroll tax records. I am a big fan of digitalisation of our tax affairs despite not liking paying it😄.