Enhanced Reporting Requirements (ERR)

Revenue recently published its Annual Report for 2023 and included were some statistics on ERR, which came into effect from 1 January 2024.

As of 31 March 2024, almost 287,000 submissions have been received from approximately 30,000 employers, in respect of more than €310 million in payments and benefits provided to over 400,000 individual employees.

The €310 million consists of almost €270 million in travel and subsistence payments, approximately €38 million in qualifying incentives under the small benefit exemption and approximately €2.4 million for the remote working daily allowance.

Revenue Business Division has confirmed that it is now planning a "nudge" campaign which will target employers who have not yet made any submissions under ERR. The specifics and timing of the campaign are not yet finalised.

It is understood that Revenue have issued notices to 115,000 employers reminding them of their obligations under the ERR scheme.

As previously advised, Revenue will not operate any compliance programmes specifically related to ERR reporting obligations and it will also not seek to apply any penalties for non-compliance with ERR prior to 30 June 2024.

"Employers are strongly encouraged to continue familiarising themselves with this guidance and support and are reminded that they are expected to take all reasonable steps to ensure that they comply with the new reporting obligations ahead of 30 June 2024," Revenue said in a statement.

"Revenue's ongoing business compliance programme includes payroll related reviews and interventions, as part of which the provision of benefits and payments to employees and directors, along with other areas of potential tax risks related to staff remuneration, are examined as a matter of course," it said.

Employers are therefore reminded of their ERR obligations in advance of 30 June 2024 and should familiarise themselves with the process required to complete.

Revenue refers to its series of free ERR webinars which will be held up to the end of June 2024. Employers can register for Thursday 13 June via Revenue's Eventbrite page.

As previously advised, ERR involves the mandatory reporting to Revenue by employers in respect of reportable benefits.

Reportable benefits are those paid to employees without the deduction of tax and include the following three specific benefits:

1. Remote working daily allowance of €3.20
2. Payment of travel & subsistence expenses, and
3. The small benefit exemption

If you, as an employer, pay any of the above to your employees, from 1 January 2024 you have an obligation to report this information directly to Revenue on or before the date of payment to the employee.

From 1 July 2024, employers who fail to engage with Revenue or who persistently breach PAYE regulations are liable to a €4,000 penalty per offence under Section 987 of the Taxes Consolidation Act 1997.

Please see our earlier article on ERR obligations for more information.

Since January the Crowe team have had positive interaction with Revenue on the practical operation of the ERR programme. A pdf of frequently asked questions since implementation on 1 January 2024 can be downloaded here.

Should you have any further queries, one of our team would be delighted to share their insight with you.