Enhanced Reporting Requirements

Summary

What you need to know about Enhanced Reporting Requirements in Sage Payroll.

Description

From 1 January 2024, all employers need to report to Revenue three categories of non-taxable employee remuneration.

This is Enhanced Reporting Requirements (ERR).

The employee remuneration includes:

Up to €3.20 per day remote working payment
Small Benefits Exemption
Travel and subsistence

NOTE: The ERR submission automatically sends alongside your usual payroll submission when completing a pay run.

Resolution

Remote Working Daily Allowance

For each employee for whom a Remote Working daily allowance is paid, employers must report the:

Total number of days
The amount paid (up to €3.20 per day)

These payments aren’t subject to PAYE, USC, or PRSI.

Small Benefits Exemption

Employers may make tax-free benefits to employees in the form of vouchers or other benefits.

A maximum of five payments per year totalling €1,500.00

For each payment not exceeding €500 employers must report:

The value of each benefit paid

These payments aren’t subject to PAYE, USC or PRSI.

CAUTION: If the second payment takes the employee over the €1,500.00 limit, then the whole of the payment is subject to PAYE.

▼Example 1

First payment = €250.00

Second payment = €250.00

Third payment = €250.00

Fourth payment = €

Fifth payment = €250.00

Total payment = €1,250.00

The fifth payment brings the total to less than the €1,500.00 limit, but the employee can’t claim any more small benefits exemption payments. They’ve reached the maximum of five per year.

It qualifies as a tax-free benefit.

▼Example 2

First payment = €500.00

Second payment = €500.00

Third payment = €550.00

Total payment = €1,050.00

The third payment brings the total over the €1,500.00 limit.

The whole €550.00 payment doesn’t qualify as a tax-free benefit.

Pay this as a normal taxable benefit.

▼Example 3

Employer A provides easter eggs every year in April to all of its employees. Employer A also provides three €50 vouchers in January, March, June, August and November each year to all of its employees.

Employer A must determine before it provides any small benefit to its employees whether that ‘payment’ is a taxable payment, where income tax, USC, and PRSI are applicable and it’s reported through payroll.

If Employer A is satisfied that the benefit meets the conditions for the small benefit exemption, it must be reported in an ERR submission, with the date of payment and the value of the payment reported.

One of the conditions of the small benefit is that it’s the first and second provision of such a gift, with a maximum value of no greater than €1,500 that is to be deemed the small benefit and subject to the exemption.

In this instance, the provision of the voucher in January March, June, August and the easter egg in April will constitute small benefits for which the conditions for tax-exempt treatment will apply. As with the other examples, the voucher in January must be reported on or before it’s provided to the employee and the value of the easter egg must be reported on or before it’s provided to the employee in April.

Therefore, these benefits must be reported through ERR. The voucher in November is taxable, as it’s the sixth incentive given in the year and must be taxed in the normal way through the PAYE system

Travel and subsistence

The following items, and the amount of each payment, must be reported in respect of every employee and director:

Each of the following payments has limits. Certain values have annual limits per employee.

NOTE: Vouched items are backed up with receipts, for example, meals and fuel. Unvouched items, for example, mileage, are .

Travel vouched
Travel unvouched
Subsistence vouched
Subsistence unvouched
Site Based Employees
Emergency travel
Eating on site
Advance Payment

These payments aren’t subject to PAYE, USC or PRSI.

Points of note

Emergency travel is up to a maximum of 60 incidences per year.

Each travel incidence is reported as a total.

From 2025 each travel incidence, will be reported separately.

Enhanced Reporting Requirements Payments

New payment types have been added to Sage Payroll so you can pay employees their remuneration.

The payments are created in the same way as regular salary and hourly payments.

If you need help with creating payments, read the article Create and manage payments.

Example of the new ERR payment type:

Enhanced Reporting Requirements (ERR) Report

Example of an ERR report showing the ERR payment types:

Advanced Payments

As part of ERR, Revenue has introduced a new Travel and Subsistence payment type of Advance Payment.

This allows employers to record payments made in advance to employees through ERR. The current method is to record a Taxable payment to be reclaimed later.

When an Advance Payment has been recorded through ERR (for example, €500) and the employee returns from their trip the Advance Payment is reclaimed using a negative value (-€500).

Reconcile the actual Travel and Subsistence payments

You need to record The relevant Travel and Subsistence expenses in payroll. When you record these expenses, reconcile them to a previous advance payment. This is done by ticking the Reconcile to Advance payment box during the payment run.

Points of note

You can pay a new Travel and Subsistence payment in the same pay run as reconciling an advance payment.

To do this, add two of the same Travel and Subsistence payments. Use one to reconcile to the advanced payment, and the other to make the new payment.

The phrase "Reconcile to Advance Payment" doesn't show on the employee payslips.

▼Example payment run using Advance Payment

In this example, you make the Advance Payment along with the usual employee salary.ERR Report with Advance Payment used

The Advance Payment will show on one line for each employee.

▼Example payment run using Reconcile Advance Payment

In this example, the employee receives their usual salary.

Enter the original Advance Payment value as a negative amount.

The Travel Unvouched, and Subsistence Unvouched values are part of the original Travel and Subsistence Advance Payment.

The employee accounts for these expenses (petrol, meals, etc.) and reconciles them to Advanced Payment in the pay run.

The €30.00 Travel Unvouched payment is a new Travel and Subsistence payment. This is unticked and won't be reconciled to the advance payment.

ERR Report with Reconcile with Advance Payments used

If you use , the ERR report shows a second reconciled line (REC) for each employee. The REC line will only show when reconciled payments are present.

You can view the ERR report before finalising the payroll. You’ll see the link in the payroll summary screen. Example:

You can also access this from the completed pay runs list by selecting the Pay Runs tab.

Enhanced Reporting Requirements

Summary

Description

Resolution

Remote Working Daily Allowance

Small Benefits Exemption

Travel and subsistence

Points of note

Enhanced Reporting Requirements Payments

Example of the new ERR payment type:

Enhanced Reporting Requirements (ERR) Report

Advanced Payments

Reconcile the actual Travel and Subsistence payments

Points of note

In this example, you make the Advance Payment along with the usual employee salary.ERR Report with Advance Payment used

ERR Report with Reconcile with Advance Payments used

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