As of the 1st of January 2024 Employers should be aware of the introduction of Enhanced Reporting Requirements (ERR) which will involve mandatory reporting to Revenue of certain non-taxable benefits.

Current Reporting Obligations

Currently, all employers are required to submit payroll details to Revenue in respect of each individual employee/director in their employment on or before the date they make a payment of an emolument to the employee/director.

Payroll details include pay, income tax, USC and PRSI deductions, as well as taxable benefits, pension contributions and redundancy payments.

What is New under ERR

Finance Act 2022 extends current reporting obligations to include three specific non-taxable payments made by employers to their employees/directors.

With effect from 1 January 2024, Employers are required to report to Revenue, in real time, the following information:

  1. Remote working daily allowance of €3.20

Employers are obliged to report:

  • The total number of remote working days
  • The amount paid
  • The date paid to the employee/director
  1. Small benefit exemption:

Employers are obliged to report:

  • The value of the benefit
  • The date granted to the employee/director
  1. Travel and subsistence:

Employers are obliged to report:

  • The amount paid and 
  • The date paid to the employee/director for each of the following subcategories:

-Travel vouched

-Travel un-vouched

-Subsistence vouched

-Subsistence un-vouched

-Site-based employees (including "country money")

-Emergency travel

-Eating on-site

The Revenue Guidelines for the tax treatment of the reimbursement of travel and subsistence expenses is linked below:

Revenue Guidelines

How will the information be reported to Revenue:

There are three reporting mechanisms available to employers.

  1. Direct reporting software packages

This will allow third-party software to integrate with Revenue systems. You should contact your payroll software provider.

  1. ROS file upload

Employers will have the option to input the required information to a file which they can upload directly to their Revenue Online Service (ROS) account.

  1. ROS online form

Using the online form, employers will be able to input the required information directly into ROS, with the necessary screens being provided.

Below is a link from Revenue which details how to submit payments through the Revenue Online Service:

Submitting Details To Revenue

Preparing for Enhanced Reporting Requirements?

In order to  prepare for 1 January 2024, employers should:

  • Review how they are currently collating the reportable benefit information.
  • Determine how current IT systems will integrate with Revenue's online reporting facility
  • Consider current payment frequencies, to reduce potential administration.

In advance of January 2024, it is important that employers review their current policy on the reimbursement of reportable benefits to ensure current practices are aligned to legislation and Revenue guidance. ERR will provide Revenue with increased visibility of tax-free amounts for analysis and compliance interventions.

Should you require further clarification relating to the subject matter contained or indeed any matter relating to your business please do not hesitate to contact DBASS <01 849 88 00> or where a member of our team will be on hand to assist you.