What are the new Enhanced Reporting Requirements (ERR) for employers?

From 01 January 2024 employers will be required to report details to Revenue of certain non-taxable payments made to employees. This new process is known as Enhanced Reporting Requirements (ERR).

Where employers make a tax-free payment for one or more of the expenses and benefits listed below, they must submit the details electronically to Revenue (before the payment date).

ROS will provide a means of manually submitting ERR details. This facility will be similar to that currently used for payroll reporting.

Revenue is asking for this information because they want to improve their system for monitoring and intervening in cases where employers may not be following the rules.

 

Tax-free payments included in the Enhanced Reporting Requirements (ERR)

 

The tax-free payments which should be reported to Revenue fall under 3 categories as follows:

 

1. Travel & Subsistence

Travel costs may include covering the cost of flights, taxis, or public transport.  Employers may also repay employees for use of their private motor vehicles used for business journeys.

Employees may also incur subsistence expenses if working away from their normal place of work e.g. accommodation and food expenses.

The following are the types of travel & subsistence expenses which must be reported from 1 January when a tax-free payment is being made:

• Travel Vouched
• Travel Unvouched
• Subsistence Vouched
• Subsistence Unvouched
• Eating on Site
• Site based employees (includes “Country Money”)
• Emergency Travel

Vouched expenses are those for which you have supporting documents or receipts are provided as evidence.

Unvouched expenses are those for which you have no receipts or supporting documents.

The amount of each payment and the payment date must be reported to Revenue.

 

2. Small Benefits

Employers are allowed to give employees up to two, tax-free small benefits each year under the Small Benefit Exemption Scheme (not exceeding a total value of €1,000).  These benefits are usually given in the form of a voucher and cannot be redeemed for cash.

The value of the benefit and the payment date must be reported to Revenue from January 2024.

 

3. Remote Working Daily Allowance

Employers who pay employees an allowance towards expenses related to remote working (up to €3.20 per day) can be paid to the employee tax-free.

The total number of days they are receiving the allowance for, the amount paid and the payment date must be reported to Revenue.

 

We can help

Meeting your obligations as an employer can be incredibly daunting but TaxAssist Accountants can take away the hassle. We provide payroll services to hundreds of companies across Ireland. Contact us today to set up an initial consultation about your payroll needs. 
 

Date published 12 Dec 2023 | Last updated 12 Dec 2023

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.