Enhanced reporting requirements, due to come into effect on 1 January 2024, will affect employers who provide certain benefits to their employees or directors.
From 1 January 2024, under an Enhanced Reporting Requirements (ERR) measure introduced in Finance Act 2022, mandatory reporting of certain employee benefits is due to come into force.
How will these Enhanced Reporting Requirements affect me?
Many employers provide work-related benefits for their teams. These benefits typically include things like:
- reimbursing work-related travel and subsistence expenses
- providing a tax-exempt daily allowance of €3.20 for remote workers to offset the additional heating, electricity and broadband costs they incur when working from home
- rewarding employees by providing benefits like a voucher at Christmas under the Small Benefit Exemption scheme.
The Enhanced Reporting Requirements mean that you will have to collect information about ‘reportable benefits’ and submit it to Revenue in real time using the Revenue Online Service (ROS). ‘Real time’ means that the submission must be made on, or before, the payment date to the employee.
What are ‘reportable benefits’?
Three ‘reportable benefits’ are included in the new requirements:
- Small benefit exemption
- Remote working daily allowance
- Travel and subsistence
However, as the requirements that come into effect on 1 January 2024 represent Phase 1 of the new regime, it is likely that other benefits may be included in future.
How can I get ready for these enhanced reporting requirements?
With these enhanced reporting requirements now only weeks away, it’s important to make sure that you will have the necessary information available when the time comes to make your first submission. Now is the time to check that you have processes in place to collect, record store and submit the relevant documentation and that your systems enable you to access this information in a timely and secure manner.
In our next blog, we will look in more detail at the information that Revenue will require. In the meantime, if you are a GroForth client and have questions about ERR, please contact a member of our team.