Has your business started reporting under the new Enhanced Reporting Requirements?

Doone O'Doherty Partner, PwC Ireland (Republic of) 14 December, 2023

Enhanced Reporting Requirements: what employers need to know

Enhanced Reporting Requirements came into effect in Ireland for employers on 1 January 2024.

The new rules require employers to report, on a real-time basis, three categories of non-taxable payments: remote working allowance, small benefits exemption, and travel and subsistence. Failure to comply with the new rules can result in penalties. 

Revenue is taking a “service for compliance” approach up to 30 June 2024 - i.e. a softening of penalties with no formal compliance interventions until then. However, this does not mean Revenue won’t be monitoring enhanced reporting returns from employers. Revenue expects employers to comply with the reporting from 1 January 2024 and could get in touch if they perceive returns are being incorrectly filed or obligations are being missed. Reporting must commence as soon as possible and it is important that employers are up to speed and are aware of their obligations and working to comply.

Business professionals documenting notes using a notepad and tablet.

What information do you need to report?

Since 1 January 2024, all employers are required to report to Revenue, on a real-time basis, three categories of non-taxable payments:

  1. Remote working allowance of €3.20 per day;

  2. Small benefits exemption; and

  3. Travel and subsistence (seven specific sub-categories).

An information return is required on or before each date any employee receives any of the reportable ERR elements. If multiple expense reimbursement payments are made during the month, multiple returns will be required on or before each date on which a reportable benefit/expense reimbursement is provided.

For each employee, the submission must include employee details, date of payment, tax year, employee reference and employee ID. This is not an exhaustive list of required data fields—Revenue has published a comprehensive list here.

It is mandatory for the employer to provide a valid PPSN and employment ID for each employee (if no PPSN or employment ID is available, the employer must provide the employee’s address, date of birth and employer reference instead). Revenue will provide a facility within ROS for employers to look up employees’ employment IDs using each employee’s PPSN.

What’s new since our last update?

Filing options

ERR returns are separate from PAYE EMP (standard payroll fillings). They have a different service area on ROS and require a separate registration.

Employers can complete their real-time ERR submissions in three ways:

  1. By employer file upload manually through ROS.The ERR system on ROS can only accept JSON or XML file formats. Employers planning to file via bulk upload must ensure that their returns are in the correct format, including all required data, to ensure the files upload to ROS successfully;

  2. Manual entry of details into ROS by the employer using a specific ERR portal; or

  3. Using an ERR software package that files directly to ROS (e.g. an add-on to an existing package provided by an employer’s payroll or expense software provider, if available).

Revenue activity

Revenue continues to engage with employers on ERR, including hosting free online events for employers to give an overview of the new reporting requirements along with instructional videos on various aspects of ERR.

Revenue has issued further guidance, TDM Part 38-03-33 and an FAQ document about ERR.

The reporting is expected to provide high-quality data to support the Department of Finance in policy considerations.

In addition to quantifying the uptake and tax impact of the Small Benefit Exemption and the Remote Working Allowance, ERR will provide additional data to Revenue on a real-time basis, which may be used for risk-profiling purposes.

Penalties and compliance interventions

Revenue has indicated a “service for compliance” approach up to 30 June 2024 - i.e. deferral of commencement of enforcement of penalties for non compliance, and a commitment to not initiate any formal compliance interventions during this period. With that said, Revenue will be reviewing submissions received (or not received) from employers and is likely to contact employers in relation to the new filing requirements. As such employers cannot ignore this reporting obligation until 30 June 2024:  Reporting must commence as soon as possible and it is important that employers are up to speed and are aware of their obligations while working to comply. 

Frequently asked questions

From our interactions with clients and Revenue in relation to ERR, including a recent PwC webcast where we hosted a questions and answers segment with Revenue, we have identified key queries clients are asking. The responses are summarised below.

1. Who is responsible for reporting?

Any employer who makes a payment or provides a benefit to an employee that falls within the reporting requirements must make a return in line with ERR requirements.

Each organisation is different. Larger organisations may have multiple individuals or teams responsible for different in-scope reporting elements (HR, payroll or finance, for example). Employers must ensure interaction between all relevant internal stakeholders to determine who should be responsible for ERR filings and agree on the following:

  • the necessary data and how it can be extracted in an appropriate reporting format;

  • the frequency with which reporting will be required;

  • internal controls/review procedures; and

  • the method of reporting.

2. Will a template file be provided to employers who wish to use the file upload option for reporting?

Detailed information from Revenue regarding data points to be reported and upload file formats can be found here.

Revenue has provided a csv file which may assist employers as a form of template in regards to the necessary information for inclusion in the return. This must however be converted into JSON or XML format prior to uploading on ROS. Further information can be found on Revenue’s Github linked here under the ‘ERR Examples PIT Next Version’ section. 

Revenue have added a recording regarding conversion of csv files to JSON on their website linked here. Revenue does not however provide a converter tool to facilitate employers in converting csv files to JSON or XML.  

4. Are travel and subsistence paid directly by the employer to a travel vendor in scope for ERR reporting?

Expenses paid directly by the employer to hotels, airlines or other travel providers in relation to travel and subsistence expenses incurred for business purposes are not currently in scope for ERR reporting. For a reporting requirement to arise under ERR in relation to travel and subsistence, the employer must reimburse the employee for the travel and subsistence expenses incurred by the employee (whether on a vouched or allowable flat-rate basis). Travel and subsistence expenses incurred on company credit cards and settled by the employer are not in the scope of ERR reporting.

5. Are employees travelling to a foreign location for work within the definition of “employee” for the reporting requirements?

If any of the three payments outlined above (small benefit, remote working daily allowance or travel and subsistence) are made to any employee or director whose income is reportable for PAYE purposes in Ireland, the expenses reimbursed to this employee will fall within the scope of ERR. Revenue has confirmed that employees subject to a PAYE exclusion order do not need to be reported for ERR purposes.

6. Do per diems fall under the reporting?

Yes. Daily allowances paid to employees (e.g. civil service rates for travel and subsistence on business journeys) fall under travel and subsistence. They will therefore be in-scope for ERR and will be reportable. There will be a specific sub-category under travel and subsistence where such “unvouched” amounts must be reported on or before the date of payment to employees.

7. Our directors are not paid a salary and are therefore not on our payroll. However, we reimburse these directors for travel expenses. Does this fall within the scope of ERR reporting?

ERR applies to directors as well as to employees. The payments of travel and subsistence paid to directors are reportable under ERR even where the director is not in receipt of pay.

Key actions businesses can take today 

If you haven’t already done so, employers should:

  1. Understand the new reporting requirements and identify relevant data owners within your organisation. Consider data quality and timeliness, data flow, reporting capabilities, accountability etc

  2. Analyse the data before Revenue does. Consider whether any policy or process changes are required, including any retrospective non-compliance that may need to be addressed with Revenue via a self-correction/voluntary disclosure.

  3. Educate stakeholders, map and document internal roles and responsibilities, and keep compliance under review regarding timeliness, quality, completeness of data and tax risk.

  4. Consider what resources you’ll need to manage ongoing reporting. Will you use software? Does your current provider have a solution? If manual reporting will be used, you’ll need to allocate resources and train your people.

How can PwC help?

PwC Ireland’s Employment Tax and Payroll Solutions teams can help your organisation understand and comply with ERR. Our services include: 

  • guidance on what is reportable and the rules around taxable and non-taxable benefits;

  • an ERR reporting service on an outsourced basis; 

  • reviews of your organisation’s current policies and practices around the reportable categories of payments; 

  • analysis of your organisation’s data; 

  • supporting the management of data sources to support compliance requirements; and

  •  bespoke training workshops with internal stakeholders.

 If you would like to discuss any aspect of ERR, contact us today.

Meet the Workforce Tax team

Contact us

Doone O'Doherty

Partner, PwC Ireland (Republic of)

Tel: +353 87 276 8112

Pat Mahon

Partner, PwC Ireland (Republic of)

Tel: +353 86 172 6745

Emily Bourke

Director, PwC Ireland (Republic of)

Tel: +353 87 752 4569

Jessica Webbley-O'Gorman

Director, PwC Ireland (Republic of)

Tel: +353 86 837 5508

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