Irish businesses must prepare now for 2024’s payroll changes, including ERR, auto-enrollment, sick leave and minimum wage increases.
The new year brings many changes for Irish employers so are your payroll processes ready?
ERR in 2024
Revenue’s Enhanced Reporting Requirements (ERR) apply in Ireland from 1st January 2024. It requires Irish employers to report details of some payments – “reportable benefits” – including:
- Small benefit – Since January 2022, you can give employees up to two small non-cash benefits each year tax-free – such as gift cards, vouchers, memberships or tickets. They must not exceed €1,000 in total.
- Remote working daily allowance – Employers must now report the total number of days, amount paid and date paid.
- Travel and subsistence – Employers must report reimbursement of business-related travel and subsistence costs, including emergency travel and eating on site.
Payments should be submitted on the Revenue Online Service (ROS).
Our payroll team have been implementing changes for our clients and have found that many businesses may need to review the processes involved in collating information to ensure they are ready to start reporting on Jan 1st. Read more in our ERR blog post.
Pension auto-enrolment begins in Q3 2024
Auto-enrolment, the new retirement savings scheme for Irish employees, will start in the second half of 2024.
Most employees in Ireland who earn more than €20,000 without a pension scheme already will be automatically enrolled into the new system. Employees and employers will initially each pay 1.5% of gross salary into the scheme, with a State top-up. Contributions will rise over 10 years until they reach 6%.
This “transformative scheme” has been described as a once-in-a-generation pension policy but 70% of people surveyed recently were unaware of its introduction in 2024. It is likely to create challenges for businesses as it rolls out, says Caroline Codd, who leads our payroll team. Our auto-enrolment guide includes what employers should do now.
Other payroll changes in 2024 are:
- Statutory sick leave increases from 3 days to 5 days.
- National Minimum Wage will increase by €1.40 to €12.70 per hour.
- Parent’s leave will be increased to 9 weeks from August 2024.
Save time with outsourced payroll services
If you are an employer, you need to engage with your finance, payroll and HR teams on the requirements and ensure your payroll software provider is aware of and implementing these changes. You may need to review processes involved in collating business information in order to report correctly.
As payroll becomes increasingly complex, many Irish businesses are now outsourcing their payroll & bookkeeping services for a simple and cost-effective approach. Our team can provide customised and compliant accounting solutions, implemented by experts, without the costs of employing full-time staff.
Want to take the time and hassle out of payroll? See our services on our website or email caroline@paulodonovan.ie to discuss your needs.
