Small non-taxable employee benefits must be reported to Revenue from Jan 2024

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Small non-taxable payments to employees will have to be reported to Revenue from 2024 placing another requirement on employers and their payroll functions.

By Michelle Egan, AITI, CTA

A new Enhanced Reporting Requirements (ERR) process is being introduced by Revenue for 2024 and later years to capture details of some non-taxable payments made to employees and directors.

What benefits are impacted?

Revenue has advised that this is the first phase and that more benefits may be added in later years. The payments to be reported in 2024 are set out below.

Note that payments will remain tax-free unless amended in later Finance Acts.

Small Benefit Exemption

This includes vouchers or other non-cash benefits with a value up to €1,000 in a year.

From 1 January 2024 employers must report the value of the benefit and the date it was granted to the employee/director.

Remote Working Daily Allowance

In 2023 employees could receive up to €3.20 per day tax free with anything over that subject to PAYE, PRSI, etc.

From 1 January 2024 employers must report the total number of days, the amount paid and the date on which payment was made.

Travel and Subsistence

This includes vouched and unvouched travel and subsistence payments, as well as payments to site-based employees (including ‘Country Money’), emergency travel and ‘eating-on-site’ allowances.

The amount and date of each payment must be reported for each employee/director.

How will this be reported?

Employers will be required to report details of the non-taxable benefits on or before any payment is made to employees/directors.

A Revenue Online Service (ROS) facility will be provided to enable employers to submit, amend and correct enhanced reporting requirement data.  However, this is not yet in place so the full details of how this can be done remain unclear.

It is also expected that 3rd party software providers will also have facilities in place to support the submissions.

DHKN will advise our Payroll clients of the changes being made once further clarity is received from Revenue.

What action should be taken now?

Employers should review their policies in relation to the reimbursement of benefits to ensure they have sufficient practices and controls in place to support the tax-free payments.

Particular attention should be paid to the rates used to reimburse unvouched travel and/or subsistence payments.

They should be satisfied that they would be in a position to provide sufficient supporting documentation to Revenue if queried.

Contact us

If you have any queries on the ERR and how it may impact you please don’t hesitate to contact us.

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