Payroll Alert!
Enhanced Reporting from Jan 2024
Starting from January 1, 2024, companies have to tell the Irish tax office (Revenue) about certain tax-free payments they give to employees. This new rule comes from the Finance Act of 2022.
Here’s a simple breakdown of payments that Need to Be Reported:
Small Benefits
This includes things like vouchers given to employees, as long as the total value each year doesn’t go over €1,000. Revenue will require amount paid and date.
Remote Working Daily Allowance
If a company pays employees €3.20 per day for working from home, this needs to be reported. Revenue will require No. of days, amount paid and date of payment.
Travel and Subsistence
Companies must report payments they make to cover employees' travel and meal costs for work.
This includes: Receipt-based travel and meal costs ;
Set amounts for travel (like mileage rates, CC of motor vehicle);
Payments for working in remote locations or emergencies ;
Money for meals on work sites.
Please Note: Companies don’t have to report when employees use company credit cards or fuel cards.
HOW WILL THIS BE REPORTED?
- Companies have to report these benefits right when or before they pay them to employees.
- They will use a special online system provided by Revenue for this.
- From 2024, employees can see what their employers have reported in their own tax account online.
- This reporting is separate from regular payroll reporting to avoid confusion.
HOW SHOULD COMPANIES GET READY?
- Check how they currently keep track of these benefits, maybe changing from paper to digital records.
- Different departments, like HR and Finance, might need to work together to gather this information.
- Make sure their computer systems can work with Revenue’s online reporting.
- Teach people who approve expense claims about what’s okay to approve.
- Set up a way to keep track of these benefits that fits what Revenue needs.
- Think about changing how quickly they pay expenses, if they usually pay them right away.
Remember
Before January 2024, companies should check that their way of handling these benefits follows the new rules and Revenue’s guidance. This new reporting helps Revenue see more clearly what tax-free payments are being made to employees.
To Summarise
How Solve Outsource can help?
We have friendly and expert staff who can help companies understand and meet these new reporting requirements.
Author..
John Carolan ACMA, CEO of Solve Outsource
Contact Email: john@solve.ie
