Revenue reminds employers of enhanced reporting obligations

May 22, 2024

Revenue has issued notices to 115,000 employers reminding them of their obligations under the Enhanced Reporting Requirements (ERR) scheme.

Since January 1st, employers who provide the remote working daily allowance, untaxed travel and subsistence payments or qualifying incentives under the small benefit exemption to their employees and directors, without the deduction of tax, are required to report the payments or benefits to Revenue in real time.

So far 33,000 employers have made submissions under the new ERR reporting mechanism, Revenue said.

In its correspondence to firms who have not yet engaged, Revenue outlined the range of supports available to assist employers in understanding their obligations and where to find them.

“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.

The tax collection authority has said it will not operate any compliance programmes specifically related to ERR reporting obligations.

It also will not seek to apply any penalties for non-compliance with ERR prior to 30 June 2024.

“However, 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.

“The expense and benefit data, in conjunction with the payroll data, provided by employers assists Revenue in assessing risks associated with these benefit and payment types, and the operation of PAYE on all taxable income, in real-time.”

“This serves to enhance Revenue’s data-driven risk assessments, focusing on the riskiest cases and reducing the likelihood of a compliance intervention for compliant taxpayers.”

Prior to them coming into effect, small business organisations expressed concerns that employers were not aware of the requirements and were therefore not prepared.

Article Source – Revenue reminds employers of enhanced reporting obligations – RTE

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