Enhanced Reporting Requirements: Ensure Compliance Before 31 December 2024

ERR came into effect for employers on 1 January 2024 and under these rules, employers are required to report three categories of non-taxable payments or benefits on a real-time basis: remote working daily allowance, small benefits and travel and subsistence. 

For the duration of 2024, Revenue agreed not to operate any formal compliance interventions in respect of ERR and not to seek penalties for non-compliance, in an effort to support employers to comply with ERR during the first year of operation. Revenue expects that by now all liable employers will have put appropriate procedures in place to comply. It is also expected that any employers who commenced filing after 1 July 2024, backdates its filings to 1 July 2024.

It is expected that ERR will form a normal part of PAYE interventions in 2025 and ERR compliance may be factor informing selection of employers for compliance interventions. 

As we reach the end of Revenue’s “service to support compliance” approach towards ERR, it is critical for employers to ensure they are fully compliant with ERR obligations that have been in effect since 1 January 2024.

Small Benefit Exemption 

It is also timely to remind employers about reporting Christmas gifts made to employees that meet the criteria for the Small Benefit Exemption (SBE) where appropriate. Revenue have clarified that the first two benefits made in a year, that meet the small benefit criteria, (i.e. the provision of no more than two vouchers or benefits up to a combined value of €1,000 per annum), will be deemed to be a small benefit and therefore must be reported under ERR.

From 1 January 2025, the number of tangible non-cash benefits that can qualify for the SBE will increase to five benefits, provided their cumulative value does not exceed €1,500.

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