From 1st January 2024 all employers will be required to report details of certain "non-taxable" payments and benefits to Revenue which have been made to employees and directors.
When one of these payments (listed below) have been paid, details must be submitted to Revenue on or before the date of payment.
Some employers may make such payments to their employees through their payroll, while others may pay them separately from payroll, some may operate a mix of both. Either way the employer is required to report these payments to Revenue on or before the date of payment.
As part of the preparation for Enhanced Reporting Requirements (ERR), it is recommended that employers check that their payroll software will facilitate the reporting of such payments to Revenue. Some of the payroll software on the market will allow you to submit these payments to Revenue even if they are paid outside the payroll run.
The types of payments that must be reported under this new scheme are as follows,
1) Small Benefits
Employers are allowed to reward employees with up to two small non-cash benefits each year, up to a combined total of €1000 per year. Most popular examples are gift vouchers gifted to staff.
2) Remote working daily allowance.
Where employees are working from home, their employers may pay them a daily allowance of up to €3.20 per day without deducting PAYE, PRSI or USC.
3) Travel and Subsistence.
If you have employees who travel for business or who are working away from their employer’s base, you can reimburse them for their travel expenses. You can also reimburse them for subsistence costs when they are temporarily away from their usual place of work, such as the cost of staying in a hotel or the cost of a meal.
Travel and subsistence payments are broken down into the following sub-categories,
Site based Employees (sometimes called "Country Money")
Eating on site
It is important to note that the ERR requirements only applies to re imbursed expenses. If an employee pays for travel and subsistence with a company credit or debit card there is no need to submit details to Revenue.
In this initial phase it is only the 3 categories listed need to be reported. Example, if an employer is reimbursing an employee for medical expenses, there will be no need to report this to Revenue.
Employees will have full visibility of all reported payments on their myAccount profile.