Commencing on January 1st, 2024, the Revenue authority is instituting a transformative framework known as Enhanced Reporting Requirements (ERR). This initiative mandates employers and payroll processors to furnish comprehensive details pertaining to specific disbursements made to both company directors and employees.
The inaugural phase of ERR will focus on the following tax-free payments and what will be required to be reported on each.
Travel and subsistence payments:
- Travel vouched
- Travel unvouched
- Subsistence vouched
- Subsistence unvouched
- Site-based directors/employees
- Emergency travel
- Eating on site
Small benefits exemption – two benefits in the tax year and no greater than €1,000 in total:
- Date of payment
- Amount paid
Remote working daily allowance of €3.20:
In addition, a novel aspect introduced under ERR is the incorporation of remote working daily allowances. This provision stipulates the reporting requirements for such allowances, necessitating the disclosure of the total number of days, corresponding amounts disbursed, and the dates on which these payments were made.
How will you report this information to Revenue?
In anticipation of these changes, entities are presented with multiple avenues for reporting this information to Revenue.
- Utilising the Revenue Online Service (ROS) through file uploads
- Manual data entry on ROS
- Integrating the data through your existing payroll software
Preparing your company for the new ERR measures:
There are several measures your company can take to ensure the correct controls are in place.
Examine how records are maintained and how the payments are currently being collated
Review the frequency of payments to minimise the number of times you must report to revenue each pay period. The payment reports must be done with Revenue on or before the payment date to the company directors and the employees.
Review your company procedures for collecting/reviewing/approving/making these payments.
Failure to file this information or filing inaccurate information could result in fines up to the value of €4,000 so it is vital that your company is prepared for the implementation of the new reporting system. If you have any questions pertaining to the new Enhanced Reporting Requirements or would like some assistance, our team would be more than happy to help! Give Company Bureau a call at +353(0)1 6461625 or fill out our online contact form.
Disclaimer This article is for guidance purposes only. It does not constitute legal or professional advice. No liability is accepted by Company Bureau for any action taken or not taken in reliance on the information set out in this article. Professional or legal advice should be obtained before taking or refraining from any action as a result of this article. Any and all information is subject to change.