New Employer Enhanced Reporting Requirements – Reportable Benefits

Time to prepare for additional mandatory reporting

From 1 January 2024*, employers must notify Revenue of certain payments made to employees and/or directors on a tax-free basis (“Reportable Benefits”).

What are Reportable Benefits?

Currently, Reportable Benefits are:

  1. Vouchers and other non-cash benefits which fall within scope of the Small Benefit Exemption;
  1. Remote working daily allowance of €3.20; and
  1. Travel and subsistence (vouched and unvouched travel and subsistence, site based employees including country money, emergency travel, eating on site).

Revenue have indicated that this new reporting requirement will be extended to other types of benefits and payments made without deduction of tax.

What Information must be Reported?

Reportable Benefits provided to employees and directors must be notified to Revenue on a real-time basis (i.e. on or before the date the Reportable Benefit is provided). Employers must report the date of payment, the amount or value paid and in relation to the remote working daily allowance, the number of days.

This new reporting requirement will be separate to payroll submissions.

What should Employers Do?

To ensure a smooth transition to the new reporting regime, employers should:

  • Engage with relevant stakeholders across the business (finance, payroll and HR teams, managers approving reimbursements and small benefits etc.) to educate them on the enhanced reporting requirements;
  • Ensure that sufficient controls (including maintaining supporting documentation) are in place to manage the provision of Reportable Benefits to employees and directors in line with current legislation and published Revenue guidance; and
  • Review the processes involved in collating information on Reportable Benefits and consider whether additional resources may be required to capture relevant data efficiently such as new software or additional personnel to prepare and submit filings.

Reporting real-time information to Revenue will aid their efforts in payroll compliance interventions. Reportable Benefits are often a significant area of tax default by employers typically due to poor internal processes and controls. These enhanced reporting requirements will introduce a new layer of complexity and increase the administrative burden for employers. McCann FitzGerald LLP can help you prepare for this new reporting requirement. Please contact the team below or your usual McCann FitzGerald LLP contact for further information.

*Subject to a commencement order

This document has been prepared by McCann FitzGerald LLP for general guidance only and should not be regarded as a substitute for professional advice. Such advice should always be taken before acting on any of the matters discussed.