With the aim to strengthen the reporting and transparency obligations of business operations in Ireland, the government introduced the Enhanced Reporting Requirements (ERR) which are effective from 1 January 2024. The ERR mandates employers to report to Revenue, in real-time, details of certain non-taxable payments made to each employee and director. The new obligation was introduced through the Finance Act 2022, under section 897 of the Taxes Consolidation Act 1997.
ERR essentially introduces a new separate submission type. As part of Phase 1, employers must report the following three categories of tax-free benefits to Revenue via an additional return on or before the payment is made:
1. Small Benefit Exemption
Employers may provide employees with non-cash vouchers, gifts or awards through the small benefit exemption. This is limited to two small benefits per year and the combined value of the benefits provided may not exceed €1,000.
2. Remote Working Daily Allowance
Employers may provide employees with a remote working daily allowance of €3.20 per day for each day that an employee performs their employment duties from their home. Employers will be required to report the following information for each employee in terms of the allowance:
- Total number of days for which the allowance is paid;
- The amount paid
- The date of payment
3. Travel and Subsistence
Employers are required to report the following travel and subsistence benefits provided to employees, along with the date and amount of each payment:
- Travel vouched
- Travel unvouched
- Subsistence vouched
- Subsistence unvouched
- Site-based employees
- Emergency travel
- Eating on site
Please note: The reporting requirements for travel and subsistence only apply in respect of payments made directly to an employee or director. There is currently no requirement for employers to report expense payments paid directly to a provider (e.g. company credit cards).
How will employers report this information?
Revenue is providing a new ERR facility on the Revenue Online Service (ROS) platform that will allow employers to manually make submissions, amendments and corrections to ERR data. Once employers have submitted the relevant items, details of these reported benefits will be visible via the employee’s Revenue myAccount dashboard.
ERR Reporting Functionality coming to SimplePay
SimplePay aims to make your payroll reporting obligations simple and compliant. We have engaged with Revenue on ERR throughout this year to investigate how we can assist employers with their ERR submissions via functionality on our system as an alternative to making ERR submissions manually.
Revenue is currently hosting a series of free online events up until November 2023 to provide employers with an overview of the Enhanced Reporting Requirements. For more information on how to register for these events and the content that will be covered, please visit the official Revenue page here.
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