Avoid Penalties: Key Updates on Enhanced Employer Reporting for 2024

July 30, 2024
|In Payroll
|By Angela O'Leary

Key Updates on Enhanced Employer Reporting (ERR)

The Finance Act 2022 introduced Section 897C of the Taxes Consolidation Act, 1997, which requires employers to report details of certain payments made to employees and directors. The reporting began on January 1, 2024. Here’s what you need to know to ensure compliance and avoid penalties.

Payroll Obligations Effective from January 1, 2024: Employers are required to report the following “reportable benefits” paid without tax:

  1. Remote Working Daily Allowance: €3.20 per day
  2. Travel and Subsistence Expenses: Payment of these expenses
  3. Small Benefit Exemption

Documentation Requirements:

  • Maintain supporting documentation for all reportable benefits.
  • Ensure expense sheets are signed off and approved by another person.

Grace Period and Penalties:

  • A grace period was provided until June 30, 2024, with no penalties for non-compliance.
  • Revenue has extended the deadline to comply with ERR to the end of December 2024. 

 

Detailed Reporting Requirements

Reportable Categories:

  1. Travel & Subsistence: Date and amount paid across 8 categories:
    • Travel vouched
    • Travel unvouched
    • Subsistence vouched
    • Subsistence unvouched
    • Advance payment of travel and subsistence
    • Site-based employees (including “country money”)
    • Emergency travel
    • Eating on site
  2. Small Benefit Exemption: Date provided and value.
  3. Remote Working Daily Allowance: Date, amount, and number of days.

Unchanged Requirements:

  • Employers must determine if a payment or benefit is taxable or non-taxable before making it.
  • Maintain comprehensive documentation and records to substantiate tax-free status.

 

Benefits of Compliance

For Employers and Employees:

  • Reduced likelihood of Revenue compliance intervention.
  • Integration of tax reporting with business activities for timely and accurate records.
  • Employees can view details of reportable items in real-time, similar to payroll.

 

How AG Associates Can Help

At AG Associates, we understand the complexities of regulatory compliance and are here to support you every step of the way. Our team of experts can provide:

    • Consultation Services: Personalised advice on integrating ERR into your existing processes.
    • Training Programs: Comprehensive training for your staff on ERR requirements and compliance.
    • Ongoing Support: Continuous support to help you maintain compliance and avoid potential pitfalls.
  • Payroll: Outsource your payroll processing. 

Streamlining Payroll Processing for SMEs with AG Associates

Managing payroll can be a challenging and time-consuming task for SME’s. In-house payroll often becomes a constant source of stress and concern, with multiple forms to fill out, taxes to manage, regulations to comply with, and checks to approve each time a new employee is hired. 

Mistakes can lead to severe fines and fees, adding to the pressure.

Outsourcing payroll services can be a game-changer for SMEs, offering a level of efficiency and reliability that in-house processing may struggle to match. Unlike in-house staff, outsourced payroll services: never fall ill, forget tasks, or need time off. This consistency ensures that payroll is processed accurately and on time, every time.

At AG Associates, we understand the unique challenges faced by small and medium-sized enterprises. Our payroll services are designed to take the burden off your shoulders, allowing you to focus on what you do best—running and growing your business. By outsourcing your payroll to us, you can benefit from:

  • Expertise: Our team is well-versed in the latest payroll regulations and tax laws, ensuring compliance and minimising the risk of errors.
  • Efficiency: We handle all aspects of payroll processing, from form filling to tax liquidation, so you don’t have to worry about the details.
  • Peace of Mind: With our reliable payroll services, you can rest assured that your employees will be paid accurately and on time, without the stress and hassle of managing it in-house.

Don’t let payroll processing become a drain on your resources. For more information or to schedule a consultation, contact AG Associates at info@agassociates.ie.

Stay ahead of regulatory requirements with AG Associates.