Clarification of Changes from 1 st January 2024

The introduction of the first phase of the Enhanced Reporting Requirements, ERR, as specified under Section 897C of the 2022 Finance Act will take effect on 1 st January 2024.

What is this change to the reporting system and how will it affect employers and employees from the start of 2024?

From 1 st January, employers and payroll processors will be required to report (on or before the payment date) certain specified payments made to company employees and Directors.

Revenue will provide a means of manually submitting the ERR details.
In this first phase, there will be three areas that employers and payroll processors should report.

1. Remote Working daily allowance

Did you know that when an employee works a hybrid or remote working model, they may be eligible for tax relief on certain expenses relating to the execution of their daily work, including electricity, heating, and broadband?
In addition, employees can be paid a Remote Working daily allowance. Up to €3.20 per day can be paid free of tax, PRSI and USC. Details relating to this payment will now require further explanation. The report will require to report the following:

• Total number of days
• Amount paid
• Date paid

Small benefit exemption

The non-cash benefits scheme that that was introduced as a tax-free reward system for employees, was increased to €1000 per employee, per annum, in January 2022. From January 2024, those responsible for payroll will be required to report:

• the date(s) paid
• the value(s) of this benefit.

Travel and subsistence

Employees can be reimbursed for travel expenses. 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.

Note: Revenue has not indicated what will be included in future phases.

If you have any questions in relation to this new ERR, don’t hesitate to give us a call or email us at info@hthaccountants.com.