Navigating Enhanced Reporting Requirements (ERR) in 2024: A Closer Look at Real-Time Reporting
The business landscape is about to witness a significant shift as we approach the beginning of 2024. A set of new rules, known as Enhanced Reporting Requirements (ERR), is set to roll out on January 1, impacting how employers disclose tax-free benefits to Revenue in real-time.
Enhanced Reporting Requirements (ERR) are part of a broader effort to ensure transparency in reporting tax-free benefits provided by employers to their staff. From the remote work allowance to travel and subsistence costs, and even those coveted small benefit exempt Christmas gift cards, businesses will be required to relay this information to Revenue promptly.
Currently, existing legislation requires employers to submit payroll details to Revenue for each individual employee or director at the time of wage payment. The ERR expands these reporting obligations to additional payments made by employers to their employees or directors, requiring specific information to be reported to Revenue when the benefit or payment is provided.
Revenue emphasises the advantages of ERR, including the collection of the correct amount of tax at the right time, enhancing efficiency for compliant taxpayers and Revenue alike. Employers are expected to align this process with existing governance procedures, as they already maintain detailed records of non-taxable payments or benefits provided to employees.
In a recent update to their manual, Revenue outlined the impending changes. The manual provides a comprehensive breakdown of reporting requirements for various scenarios, with examples such as travel and subsistence expenses. Employers can utilise three reporting mechanisms: direct reporting software packages, Revenue Online Service (ROS) file upload, and ROS online form. The manual also highlights reporting details for subcategories such as travel vouched, travel unvouched, subsistence vouched, subsistence unvouched, site-based employees, emergency travel, and eating on-site.
In essence, ERR introduces a new reporting requirement to Revenue, not altering the taxability of benefits but ensuring earlier awareness and confirmation of terms and conditions.
If you have questions about the new requirements you can speak to one of our experts by email or phone.
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