Lawyers at McCann FitzGerald have warned that enhanced reporting requirements due to come into effect next year will introduce a new layer of complexity for employers.

From 1 January 2024, employers are expected to have to notify Revenue of certain payments made to employees or directors on a tax-free basis.

The measure on so-called ‘reportable benefits’, introduced by the Finance Act 2022, is subject to a commencement order.

In a note on the firm’s website, the McCann FitzGerald lawyers list the benefits covered as:

• Vouchers and other non-cash benefits that fall within scope of the Small Benefit Exemption,
• Remote working daily allowance of €3.20, and
• Travel and subsistence.

Controls

McCann FitzGerald urges firms to engage with their finance, payroll and human-resources teams to educate them on the requirements.

The lawyers add that firms should ensure that sufficient controls are in place to manage the provision of reportable benefits.

The note also says that firms should review the processes involved in collating information on such benefits.

“Reportable benefits are often a significant area of tax default by employers, typically due to poor internal processes and controls," the McCann FitzGerald note states.