We have some important updates regarding the recent changes introduced by the Revenue Commissioners, impacting the way we report certain expenses and benefits to employees and directors.
As of January 1, 2024, the Enhanced Reporting Requirement (ERR) is in effect, requiring employers to report specific details of payments through the ROS system, similar to the current payroll reporting process. As always, we aim to ensure that you are as up to date as possible.
What to Report: Small Benefits and Remote Working Allowance.
- Small Benefits:
If you provide small benefits such as gift vouchers, gifts for special occasions, or long-term service awards, you must report the date and value of these benefits. The cumulative value should not exceed €1,000 in a tax year. Only the first two qualifying benefits that are exempt. Any subsequent benefit must be taxed and the employer should make the necessary deduction under the PAYE system and report through payroll.
- Remote Working Allowance:
The non-taxable daily allowance for remote workers, aimed at offsetting remote work-related costs, must be reported. This includes the number of days, amount paid, and payment dates.
Travel and Subsistence Payments: Ensuring Compliance.
- Travel Vouched and Subsistence Vouched:
Report date and amount for vouched travel and subsistence expenses, including receipts.
- Travel Unvouched and Subsistence Unvouched:
Specify ‘Flat rate allowances’ within Civil service rates and provide details.
- Site-Based Employees:
Expenses for travel and subsistence may be tax-free for site-based employees, subject to specific rates. Ensure compliance with the 32km (20 miles) requirement.
- Emergency Travel:
Report emergency travel expenses at Civil Service rates.
- Eating on Site Allowance:
Paid without tax deductions, report this allowance – €5.00 per day.
Please note the Travel and subsistence expenses paid directly through company credit cards where no reimbursement has taken place, this is not in the scope of Enhanced Reporting Requirements
How to Report: Choose Your Method
Revenue offers three reporting options:
- Third-party software:
Interface directly with Revenue.
- Upload via ROS:
Submit an expenses/benefits file through ROS.
- Manual Submission via ROS:
Manually submit expenses/benefits through ROS.
It is important to ensure that all payments are reported separately from payroll, and employees can view submissions in their Revenue myAccount. No receipts need to be uploaded, but we would advise that you retain them in case of any Revenue intervention.
Why is Revenue Implementing ERR?
The additional information aims to provide Revenue with better oversight of payroll management. Following the 2022 overhaul of the Compliance Intervention framework, electronic resources will be used to target taxpayers for compliance intervention, resulting in increased desktop compliance checks on payroll taxes.
Non-Compliance Consequences: Avoid Penalties
Failure to comply may result in a €4,000 penalty per breach. Correct any misfiled returns before the due date to avoid penalties.
Preparing for ERR: Action Points for Employers
- Review payment categorisation and record-keeping practices.
- Assess the frequency of payments for efficient reporting.
- Align policies with legislation and rules.
- Establish controls for tracking vouchers and non-cash benefits.
- Identify responsible parties for timely and accurate reporting.