Revenue have issued updated guidance on the Enhanced Reporting Requirements in relation to employee benefits.

The 2022 Finance Act provided for mandatory reporting to Revenue by employers in respect of three specific measures, collectively referred to as “reportable benefits”. The reportable benefits are those made without the deduction of tax being:

  1. the remote working daily allowance of €3.20,
  2. Travel and Subsistence Expenses:the payment of travel and subsistence expenses, and
  3. the small benefit exemption.

The obligation to report payment of these benefits came into effect from 1st January 2024.

In Revenue’s press release from 14th December, they confirmed that in line with Revenue’s approach to the introduction of other new reporting regimes, a service for compliance approach will be taken until the 30 June 2024. This approach involves supporting employers attempting to comply with their obligations. During this period, Revenue will not be operating any compliance programmes in relation to the Enhanced Reporting Requirements (“ERR”) and will not seek to apply any penalties for non-compliance.

The legislation requires an employer to notify Revenue on or before the provision of any of the three reportable measures to an employee in real time. An employer must determine in advance of the payment or benefit being made, whether the conditions for payment without the deduction of tax have been satisfied.

If the employer is satisfied that the payment or benefit is non-taxable and meets the criteria of one of the items reportable, they must ensure that the details are reported to Revenue, on or before the payment/benefit has been provided to the employee.

Learn More

There are three methods available to make the report. It can be done through direct reporting software, through ROS offline file preparation and upload or directly through a ROS online form.

The Revenue manual provides 16 examples of ERR covering each of the three categories. The manual can be found here.

It is important that employers are aware of their obligations and that systems are in place to manage the reporting. 

Get in Touch

If you have any questions in relation to ERR or would like assistance managing your reporting requirements, please contact Adrian Barrett or Maura Duffy on our partner-led outsourcing and payroll team. We'd be happy to hear from you!