Enhanced Reporting Requirements for Employers in Ireland

The Enhanced Reporting Requirements (ERR) comes into effect starting 1 January 2024. This new regulation mandates employers to report specific non-taxable payments or benefits provided to employees, such as Travel and Subsistence, Small Benefit Exemption, and Remote Working Daily Allowance. This regulation is being introduced to enhance compliance and transparency in the reporting of these non-taxable benefits to employees and directors.

What is ERR?

ERR mandates employers to report specific non-taxable benefits to Revenue. This initiative enhances transparency and compliance in the reporting of employee benefits. Key benefits subject to ERR include the Remote Working Daily Allowance, Travel and Subsistence Payments, and Small Benefit Exemption.

Reportable Benefits

Remote Working Daily Allowance:

Employers can pay up to €3.20 per day to employees working remotely without tax deduction. The allowance covers additional costs incurred by employees, such as electricity and heating.

When paying the Remote Working Daily Allowance a?you must report the following:

• total number of days,
• amount paid,
• date paid.

Travel and Subsistence Payments:

Reimbursements for Travel and Subsistence expenses incurred in the performance of job duties includes payments for travel to temporary workplaces, and subsistence costs like meals and accommodation.

The following Travel and Subsistence items, including the date paid and amount of each payment for, must be separately identified when reporting:

• travel vouched,
• travel unvouched,
• subsistence vouched,
• subsistence unvouched,
• site-based employees (including 'Country money'),
• emergency travel,
• eating on site.

Small Benefit Exemption:

The Small Benefit Exemption applies to non-cash benefits, such as vouchers, provided by employers. The exemption applies within certain annual limits and conditions. The date paid and the value of this benefit must be submitted.

Exclusions:

The following payments fall outside ERR's scope:

• Payments for T&S using a company credit card, where no reimbursement occurs.
• Taxable expenses processed through payroll need not be reported under ERR, e.g. Benefits-in-Kind.

Reporting Processes

Employers must maintain detailed records of all non-taxable payments or benefits provided to employees and directors. This includes the date of provision, value of the benefit, and any other relevant details. These records are crucial for compliance reviews and audits by Revenue.

Employers can report through software integrations, bulk upload to ROS, or online forms via dedicated ROS screens. Subscribers to our Ongoing Accounting Packages from €99 + VAT can report their payments via MyIncorpro.

FAQs on ERR

What Happens if ERR is Not Complied With?

• Non-compliance can lead to penalties and interest charges. It is crucial to adhere to ERR guidelines.

Are All Employers Subject to ERR?

• Yes, all employers providing specific non-taxable benefits are subject to ERR, regardless of their size or industry.

How Does ERR Affect Employee Taxation?

• Non-taxable benefits reported under ERR do not impact the employee's income tax. However, accurate reporting ensures correct tax treatment.

Can ERR Reporting Be Outsourced?

• Yes, employers can use third-party payroll services that are equipped to handle ERR reporting.

Is There a Threshold for Reporting Under ERR?

• There is no minimum threshold. All specified non-taxable benefits, regardless of their value, must be reported.

Conclusion

ERR is a significant step towards ensuring transparency and compliance in the provision of non-taxable employee benefits. Employers must understand their obligations under ERR, set up appropriate reporting mechanisms, and maintain accurate records. While this guide provides an overview, it is advisable for employers to seek professional advice for complex scenarios or specific queries related to ERR.

Further Guidance and Assistance

Should you have any queries or require assistance with your Accounting and Tax needs, our dedicated team at Incorpro is here to help. Connect with us by calling 01-4429409, or visit our Contact Page for more ways to get in touch. Stay updated and engaged by following our Social Media Pages on Twitter, Facebook, LinkedIn and Instagram.

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