Navigating payroll compliance can be daunting, especially with the introduction of Ireland's new Enhanced Reporting Requirements (ERR). Many of our clients have expressed concerns about these changes, which is why we're addressing the most frequently asked question:
"What do Ireland's new ERR entail, and how will they affect my business?"
The ERR, set to take effect from January 2024, will revamp the way employers report payroll information to Revenue. It will expand the scope of payroll reporting to include details of certain non-cash benefits, travel expenses, and remote working allowances. Here's a simplified breakdown of what you need to know:
1. Increased Transparency: The ERR mandate detailed reporting of all benefits and allowances. This means whether your employees receive a travel allowance or a small annual benefit, these must be meticulously documented and reported.
2. Real-Time Reporting: A significant change is the shift towards real-time reporting. Employers are expected to report these benefits as they are provided, aligning with the pay date rather than in arrears.
3. Focus on Benefits: Specific attention is given to the 'small benefits exemption', which allows for certain non-cash benefits to be provided tax-free. Under the ERR, the values and dates of such benefits need to be reported, even if they fall under the exemption threshold.
4. Remote Working Allowances: With the rise of remote work, the ERR specifically addresses the reporting of remote working daily allowances, a reflection of our changing work environment.
So, how does this affect your business? The ERR brings a heightened level of detail and frequency to payroll reporting, which can be a significant administrative load for any business, especially for SMEs without dedicated payroll teams.
Adapting to these changes offers an opportunity to review and streamline your payroll processes, potentially through outsourcing. Partnering with a seasoned accounting firm like RDA Accountants not only ensures compliance but can also introduce efficiencies and cost savings.
Together, we'll make sure that 2024 is a year of growth, not guesswork.
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