News
New Enhanced Reporting Requirements (ERR).
Library of Knowledge No. 68
The 2022 Finance Act outlined plans to introduce ‘Enhanced Reporting Requirements’ which comes into effect from the 1st January 2024.
What does ‘Enhanced Reporting Requirements’ mean?
From the 1st January 2024 Revenue require that specific reimbursed / tax free payments to employees (including Directors) be submitted via ROS (Revenue Online System) on or before the date of payment.
What expenses are to be submitted to Revenue?
There are three types of expenses to be reported:
Travel & Subsistence
Includes all reimbursements for business related costs: mileage, subsistence, travel costs, eating on site & country money (where vouched with a receipt or claimed via an expense claim form).
Details to be reported: Name, date of payment, expense type & amount.
Remote Working Daily Allowance
The daily amount of € 3.20, paid to an employee by the employer, tax free.
Details to be reported: Name, no. of days, date of payments, amount of payment.
Note: While the employer is not obliged to make this payment, it may be claimed through the Revenue MyAccount app.
However, this claim is not the standard € 3.20 per day. It is calculated based on days worked from home, cost of your expenses and the % claimable (currently 30%).
Small Benefit
The annual maximum amount of € 1,000 paid to employees / directors via noncash benefits – gift cards, vouchers etc..
Note: Maximum per employee 2 x € 500 vouchers / cards.
Details to be reported: Name, date paid, voucher value.
Do I still need to maintain my claim forms?
Yes, absolutely. The claim forms and all vouched receipts should be maintained and held on file.
How is this data submitted?
Revenue are currently finalizing the manual system where the data can be uploaded to ROS. In addition, they are engaging with 3rd party payroll & HR providers who should be in a position to provide enhancements to their software which will upload directly to the Revenue system.
What actions should I take as an Employer?
Over the coming weeks, we will be in direct contact with our clients to set procedures in place based on the various expenses paid.
For other business owners / employers it is strongly recommended to reach out now to your payroll / HR provider for the solution that suits your business.
Note: This is phase 1 only. Phase 2 will be advised by Revenue later when we can provide further advice.
For further information, see: https://www.revenue.ie/en/employing-people/becoming-an-employer-and-ongoing-obligations/reporting-jan-2024/index.aspx
If we can be of any assistance, or you have any queries, please feel free to contact our office.
Take care and have a good weekend.
