Are You Prepared for the New Enhanced Reporting Requirements (ERR)?

Starting from 1 January 2024, Irish employers will be required to comply with the enhanced reporting requirements (ERR) mandated by the Finance Act 2022…

New Enhanced Reporting Requirements (ERR) for Irish Employers

Starting from 1 January 2024, Irish employers will be required to comply with the enhanced reporting requirements (ERR) mandated by the Finance Act 2022. ERR will provide the Revenue with increased visibility of tax-free payments made to employees and marks the first phase of additional reporting requirements for employers in respect of tax-free benefits or payments.

This article provides a comprehensive breakdown of the reportable benefits employers pay with no tax implications, including remote working daily allowances, travel and subsistence expenses, and small benefits exemptions. It also emphasises the importance of familiarising oneself with ERR and outlines the steps Irish employers can take to ensure full compliance with the upcoming regulated mandates.

Reportable Benefits

The following three items are reportable benefits paid to employees tax-free:

1. Remote Working Daily Allowance: Employers can pay their employees €3.20 per day tax-free to cover the cost of working from home, such as electricity, heat, and broadband. Under ERR, employers must report the total number of days, the amount paid, and the date paid.
2. Travel & Subsistence: Under ERR, employers must report both vouched and unvouched travel & subsistence, country money, emergency travel, and eating on-site allowance.
3. Small Benefit Exemption: The small benefit exemption relates to non-cash benefits, including vouchers. Employers can provide two small benefits per annum, provided the combined value of the two benefits does not exceed €1,000.

Real-Time Reporting

In addition to the payroll details currently submitted on ROS for every director/employee on their payroll on or before the date they pay the wages and salaries, employers will also be required to report the three non-taxable benefits mentioned above in real-time on ROS starting from 1 January 2024. Employees will be able to view this information through their myAccount.

Preparing for Enhanced Reporting Requirements (ERR)

To ensure compliance with ERR before 1 January 2024, employers should:

• Review current policies and procedures regarding the payment of the three reportable benefits to ensure the business is tax compliant.
• Review the information currently available on the three reportable benefits to understand their implications.
• Consider if a new approach to collating the data is required for streamlined reporting.
• Engage with your payroll software provider to establish how they can assist with ERR implementation and reporting.
• Attend the free information webinars being held by Revenue to get a better understanding of ERR and its requirements.

If you have any questions or require further information about the enhanced reporting requirements, please don’t hesitate to contact our dedicated Irish payroll team.