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Revenue have recently announced updates to reportable benefits for employers, with additional payroll filing reporting obligations in relation to specific employee benefits that they provide to their staff. It is anticipated to commence from 1 January 2024.
The relevant reportable benefits are:
1) the remote working daily allowance of €3.20,
2) the payment of travel and subsistence expenses, and
3) the small benefit exemption.
This change is intended to be the start of a phased introduction of new payroll obligations for employers in respect of the provision of other employee benefits or payments that have not been subject to tax by the employer through the payroll system. It is intended that the additional reportable measures will be provided as a normal part of an employer’s payroll/payments cycle.
THE REPORTABLE MEASURES
- €3.20 remote working allowance:
If certain requirements are met, Revenue's rules allow employers to pay employees up to €3.20 for each day they work from home without having to deduct PAYE, PRSI, or USC.
- Travel and subsistence payments:
Where an employee incurs travel and subsistence expenses while performing the duties of their employment, such amounts can, subject to conditions, be reimbursed to the employee without deduction of PAYE, PRSI, or USC.
- The small benefit exemption:
The small benefit exemption allows employers to provide tax-free benefits to employees in the form of vouchers or other benefits. From 1 January 2022 employers can give employees up to two small benefits, tax free, each year. These benefits must not be in cash and the combined value of the two benefits cannot exceed €1,000.
REPORTABLE DETAILS
Revenue plan to issue comprehensive guidance on the information to be reported, as well as the reporting options available to employers. RSM will provide an update in due course when the guidance is issued.
