Non-Taxable Employee Remuneration Reporting

Posted in Regulations, Responsibilities

The introduction in the Finance Act 2022 of Section 897C of the TCA 1997 will require employers to report to Revenue details of certain payments made to employees and/or directors commencing on 1 January 2024.

Where an employer makes a payment under one or more of the following three categories, they are required to report details of these payments to Revenue on or before the date of payment i.e. on a real-time basis.

  1. Travel and Subsistence — amount and date paid for travel vouched, travel unvouched, subsistence vouched, subsistence unvouched, eating on site, site based employees (includes “country money”) and emergency travel.

  2. Small Benefit — voucher or tangible item on date provided and value. Maximum two benefits in a tax year and cumulative value cannot exceed €1,000. It is the first two qualifying benefits that are exempt.

  3. Remote Working Daily Allowance — number of days, amount paid and date paid.

Revenue, who will have enhanced information, enhanced insights and enhanced data to interrogate have stated it intends to utilise the information received to target its Revenue audit resources where it perceives the highest risk of non-compliance to arise.

Employers should consider:

  • if it provides reportable non-taxable payments to employees
  • what internal systems and processes apply
  • how and where the data is recorded and how it is to be reported
  • who is responsible for reporting to Revenue and
  • if the company will have reporting software or complete manual filings
  • if it should consider outsourcing its payroll function

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