On 1 January 2024, Revenue introduced enhanced reporting requirements which require all employers to report, on a real-time basis, three categories of non-taxable employee remuneration:
· €3.20 per day Remote Working Expense, if provided to employees;
· Small Benefit Exemption (ie typically, Gift Vouchers); and
· Travel and Subsistence
The following are the three areas of enhanced reporting requirements:
1. Small Benefit Exemption – the value per employee
2. Remote Working Expense – the amount paid per employee and the number of days it relates to
3. Travel and Subsistence – analysed as follows:
However, Revenue has also indicated that these three categories of ERR are just an initial phase of a planned expansion of employers’ reporting requirements regarding non-taxable remuneration.
You must submit a Return when an employee receives any reportable ERR elements. Moreover, the Return must be made on or before the date the reimbursement or tax-free benefit is provided to the employee. Employers must use the employee’s ID number (which is used for payroll submissions) when filing the ERR Return.
The principal aim of ERR is to enhance transparency and ensure tax compliance. After PAYE Modernisation in 2019, implementing enhanced reporting requirements was the next logical step for Revenue, given that payroll tax compliance is one of their top priorities. Revenue will analyse the additional ERR data to highlight trends and discrepancies.
Analysis of ERR data will enable them to identify compliant employers versus non-compliant employers easily, resulting in better use of resources to target non-compliant employers. It is important to note that the current phase of ERR is just phase one of enhanced reporting requirements. Indeed, the analysis of this phase will undoubtedly influence future tax policy, leading to the introduction of further reporting requirements down the road. Failure to comply with ERR will lead to employers incurring penalties such as fines and possibly legal action.
For employees, ERR provides a greater understanding of their salary package, reassuring them that their income is being reported correctly to Revenue and that any payments made outside their payroll comply with Irish tax law. All this information is easily accessible in the employee’s Revenue account (myAccount or ROS) to aid them in future planning for financial and tax-related issues.
In conclusion, if you have any questions about ERR implementation, please do not hesitate to contact us. For more information on how our payroll services can benefit you, please do not hesitate to contact us for a chat and a quote.
Source: Revenue at www.revenue.ie
A: Currently, for the purpose of Travel & Subsistence (‘T&S’) categories within the ERR
requirements, if the employee or director has not incurred the expense, and there is no
reimbursement of such an expense, the expense does not fall within the scope of Enhanced Reporting
Requirement (‘ERR’). It is not the intention that payments of Travel & Subsistence paid via
Company credit cards are required to be reported.
A: If your current submissions through payroll are taxable expenses and recorded on the
payslip, there is no need to change your existing process. However, all untaxed payments that fall under the new ERR requirements must be reported separately on or before being processed, as set out in legislation. Contacting your existing payroll provider to understand how they may facilitate ERR would be advisable.
A: Where an employee is provided with a company vehicle and uses this for private use, this
is treated as benefit in kind and should be reported via payroll. See link for further
guidance: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax
corporation-tax/part-05/05-01-01b.pdf
For a more comprehensive list of FAQs, please refer to the Revenue’s Frequently Asked Questions sheet at Enhanced reporting requirements
