Last updated: Jan 19, 2024
The Enhanced Reporting Requirements (ERR) comes into effect starting 1 January 2024. This new regulation mandates employers to report specific non-taxable payments or benefits provided to employees, such as Travel and Subsistence, Small Benefit Exemption, and Remote Working Daily Allowance. This regulation is being introduced to enhance compliance and transparency in the reporting of these non-taxable benefits to employees and directors.
ERR mandates employers to report specific non-taxable benefits to Revenue. This initiative enhances transparency and compliance in the reporting of employee benefits. Key benefits subject to ERR include the Remote Working Daily Allowance, Travel and Subsistence Payments, and Small Benefit Exemption.
Employers can pay up to €3.20 per day to employees working remotely without tax deduction. The allowance covers additional costs incurred by employees, such as electricity and heating.
When paying the Remote Working Daily Allowance a you must report the following:
Reimbursements for Travel and Subsistence expenses incurred in the performance of job duties includes payments for travel to temporary workplaces, and subsistence costs like meals and accommodation.
The following Travel and Subsistence items, including the date paid and amount of each payment for, must be separately identified when reporting:
The Small Benefit Exemption applies to non-cash benefits, such as vouchers, provided by employers. The exemption applies within certain annual limits and conditions. The date paid and the value of this benefit must be submitted.
The following payments fall outside ERR's scope:
Employers must maintain detailed records of all non-taxable payments or benefits provided to employees and directors. This includes the date of provision, value of the benefit, and any other relevant details. These records are crucial for compliance reviews and audits by Revenue.
Employers can report through software integrations, bulk upload to ROS, or online forms via dedicated ROS screens. Subscribers to our Ongoing Accounting Packages from €99 + VAT can report their payments via MyIncorpro.
ERR is a significant step towards ensuring transparency and compliance in the provision of non-taxable employee benefits. Employers must understand their obligations under ERR, set up appropriate reporting mechanisms, and maintain accurate records. While this guide provides an overview, it is advisable for employers to seek professional advice for complex scenarios or specific queries related to ERR.
Should you have any queries or require assistance with your Accounting and Tax needs, our dedicated team at Incorpro is here to help. Connect with us by calling 01-4429409, or visit our Contact Page for more ways to get in touch. Stay updated and engaged by following our Social Media Pages on Twitter, Facebook, LinkedIn and Instagram.
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