2024-06-26-KPMG_Global-Ireland_–_Enhanced_Reporting_Requirements_Update_4页_257kb

Ireland Enhanced Reporting Requirements Update Summary

Overview

• ERR (Enhanced Reporting Requirements) came into effect in Ireland on January 1, 2024, introducing new reporting obligations for employers.
• A six-month leniency period was initially set from January 1, 2024, to June 30, 2024, and was extended to December 31, 2024, with no penalties during this time.
• This update aims to improve employer compliance by providing Revenue greater visibility on non-taxable benefits and expenses.

Key Impacts

• The main changes require employers to report specific non-taxable benefits in real-time, including remote working per-diem, travel and subsistence payments, and small benefits exemptions.
• While no penalties apply during the leniency period, employers should aim to comply starting July 1, 2024, to avoid potential broader PAYE reviews and demonstrate strong internal processes.

Reporting Challenges and Methods

• ERR's real-time reporting requirement poses challenges, particularly for small benefits exemptions, which are often complex and difficult to track.
• Available reporting options include manual data entry, payroll software integration, or direct feeds from expense management systems, each with limitations.
• Employers are developing bespoke solutions, such as using third-party tools for bulk uploads or combining multiple methods to address deficiencies.

Recommendations

• Employers should review their processes by July 1, 2024, and seek professional advice if needed to ensure compliance and minimize risks.
• For details on ERR, refer to Irish Revenue's guidance and KPMG resources.

Note: Contact KPMG professionals for support on employment tax or tax technology aspects.