Enhanced Reporting Requirements (ERR) in Ireland 2024

Revenue’s Enhanced Reporting Requirements (ERR) apply in Ireland from 1st January 2024.

Employers are required to report the payment of several employee/director benefits to Revenue on or before the payment date – is your business ready for this big change?

(May 2024 update) Revenue’s ERR “grace period” ends in a month: Irish businesses must act now or face penalties.

Finance Act 2022 introduced Section 897C which requires employers to report details of some payments made to employees and directors. From January 1st, employers who pay any of the expenses/benefits below to their employees and/or directors will be required to report those benefits to Revenue on or before the payment date. 

1. Travel and Subsistence
2. Small Benefit Exemption (vouchers)
3. Remote Working Daily Allowance

Where you make one or more of these payments, you must submit the details electronically to Revenue. This submission must be made by you on or before the payment date to the employee.

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.

What do you need to report for ERR?

1. Small benefit exemption

Since January 2022, you can give employees up to two small benefits, tax free, each year.  These are non-cash benefits – such as gift cards, vouchers, memberships or tickets – and must not exceed €1,000 in total. You are required to report the date paid and value of this benefit.

2. Remote Working daily allowance

Where a Remote Working daily allowance is paid, you will be required to report the following:

• total number of days
• amount paid
• date paid

3. Travel and subsistence

The following Travel and subsistence items must be reported, including the date paid and amount of each payment:

• travel vouched
• travel unvouched
• subsistence vouched
• subsistence unvouched
• site based employees (including “Country Money”)
• emergency travel
• eating on site

Travel and subsistence revenue guidelines and rates can be found here.

Revenue have released updated guidance on this, including examples.

How do you report ERR to Revenue?

A facility will be available in Revenue Online Service (ROS) to allow you report these payments to Revenue. 

For our clients, you now need to give your expenses information to your payroll manager when they are processing your payroll and before the expenses are paid out.

Why is this information required by Revenue?

This information will allow for:

• the enhancement of Revenue’s Compliance Intervention Framework, thus directing resources away from compliant employers,
• support effective and informed policy decisions in the Department of Finance, and
• the provision of increased visibility and assurance for employees in relation to non-taxable payments.

This is phase one of Enhanced Reporting Requirements (ERR). Revenue has not indicated what will be included in further phases.

If you make any of the above payments to employees ensure that all relevant details are supplied to the person running payroll before you pay any out from 1 January 2024 on.

If you are a payroll client of ours and have any questions, you are welcome to contact your manager directly.

Record keeping for 6 years is recommended

We recommend you keep full records of the receipts, and/or back up correctly calculated and detailed expenses sheets for such expenses (mileage and subsistence rates link is included above).

You need to maintain such records for 6 years as Revenue may at any stage request these.

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.