The introduction in Finance Act 2022 of Section 897C of the TCA 1997 will require employers to report to the Irish Revenue Commissioners (Revenue) details of certain payments made to employees and/or directors. The requirement to provide this information will commence on 1 January 2024.
Where an employer makes a payment under one or more of the categories detailed below, they are required to report details of these payments to Revenue using Revenue Online Service (ROS) on or before the date of payment.
What information do you need to report?
Phase one will apply to any payments you make to an employee and, or director under any of the following categories:
Small benefit exemption
You must submit details of the date paid and value of this benefit.
Remote Working Daily Allowance
When you are paying a Remote Working daily allowance, you must report the following:
- total number of days
- amount paid
- date paid
Travel and subsistence
You must submit the following travel and subsistence items, including the date paid and amount of each payment for:
- travel vouched
- travel unvouched
- subsistence vouched
- subsistence unvouched
- site-based employees (including “Country money”)
- emergency travel
- eating on site
How will you submit payment details to Revenue?
ROS will provide a means of manually submitting Enhanced Reporting Requirements details. This facility will be similar to that used currently for payroll reporting.
There will be continuous engagement with stakeholders as this work continues during the year. This began in January 2023, with Revenue contacting all stakeholders seeking their engagement to implement this reporting requirement.
Facilities for 3rd party software providers
Revenue is currently engaging with 3rd party software providers to develop this service. A facility is available to enable software providers to test integrations with Revenue systems. Employers should ensure that their software provider is aware of this new reporting requirement and engage with Revenue in implementing it.
Why is this information required?
This information will:
- enhance Revenue’s Compliance Intervention Framework by directing resources away from compliant employers
- provide quality high level data in support of effective and informed policy decisions by the Department of Finance
- increase visibility and assurance for employees in relation to non-taxable payments
What to do next
In the coming weeks Revenue will begin providing information sessions on Enhanced Reporting. These sessions will give an overview of what will need to be reported to Revenue. Separately engagement with Software providers is taking place to ensure their systems integrate with Revenue systems.
Ensure your payroll team is well informed on the enhanced requirements by attending these sessions. The presentations will cover:
- requesting Employer Reporting Notifications by file upload
- submitting expense/benefit details by file upload or by online form
- view expenses/benefits by submission type and
- employees view of submissions made by their employer in MyAccount.
These sessions will commence in late August and will run until mid-November. A link to Eventbrite will issue to you where you can register your interest in attending one of these events. No fees will be charged for attendance at an event.
We will keep you up to date on these enhanced reporting requirements as the information becomes available from Revenue. In the meantime, if you would like to speak to once of our payroll specialists please contract us at email@example.com with your contact details and we can arrange a consultation.
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For more information visit Revenue.ie