From 1st January, 2024 employers will be required to report details to Revenue of certain non-taxable payments made to employees. Revenue is calling this Enhanced Reporting Requirements (ERR).
Where employers make a tax-free payment for one or more of the expenses and benefits listed below, they must submit the details electronically to Revenue. This submission must be made on or before the payment date.
The tax-free payments which should be reported to Revenue fall under 3 categories as follows:
- Travel & Subsistence
Travel costs may include covering the cost of flights, taxis, or public transport. Employers may also repay employees for use of their private motor vehicles used for business journeys.
An employee may also incur subsistence expenses if working away from their normal place of work e.g. accommodation and food expenses.
The following are the types of travel & subsistence expenses which must be reported when a tax-free payment is being made:
The following are the types of travel & subsistence expenses which must be reported when a tax-free payment is being made:
- Travel Vouched
- Travel Unvouched
- Subsistence Vouched
- Subsistence Unvouched
- Eating on Site
- Site based employees (includes “Country Money”)
- Emergency Travel
Vouched expenses are those for which you have supporting documents or receipts are provided as evidence.
Unvouched expenses are those for which you have no receipts or supporting documents.
The amount of each payment and the payment date must be reported to Revenue.
- Small Benefits
Since January 2022 employers have been allowed to give employees up to two, tax-free small benefits each year up to a combined value of €1,000. These benefits are usually given in the form of a voucher and cannot be redeemed for cash.
The value of the benefit and the payment date must be reported to Revenue from January 2024.
- Remote Working Daily Allowance
Employers who pay employees an allowance towards expenses related to remote working up to €3.20 per day can be paid to the employee tax-free.
The total number of days they are receiving the allowance for, the amount paid and the payment date must be reported to Revenue.
Revenue is asking for this information because they want to improve their system for monitoring and intervening in cases where employers may not be following the rules.
Submitting Payment details to Revenue
ROS will provide a means of manually submitting ERR details. This facility will be similar to that currently used for payroll reporting.
Pension Auto-Enrolment
Auto-enrolment, the new retirement savings scheme for employee will start in the second half of 2024.
Other payroll Changes in 2024
- National Minimum Wage will increase by €1.40 to €12.70 per hour on 1st January 2024.
- Statutory sick leave increases from 3 days to 5 days from 1st January 2024.
Further information available from Revenue website here.