Employers in Ireland should remain informed about impending new legislation which is set to be enforced. This will impact expense management reporting.
What are the new reporting requirements?
On Monday 1 January 2024, the Finance Act 2022 new policy (Section 897C) will be rolled out across the country. This will require employers to report details of certain expense payments made to employees and directors.
When payments on the information listed below are made, details of the payment must be made on, or before, the payment date to the employee.
Webexpenses customers will be delighted to know there is custom functionality being introduced into the system to help with this new legislation.
What details need to be reportable to Revenue?
Small benefit exemption
This is where any vouchers or benefits paid for that don’t exceed the small benefit exemption which is currently up to two small benefits each year that don't exceed a combined €1000.
Remote Working daily allowance
In a situation where you are paying a Remote Working daily allowance, you must report the following:
- The total number of days they have worked remotely.
- The amount paid.
- The date on which it was paid.
Travel and subsistence
Within the report, the following list of items must be included alongside both the date the payment was made and the value of each payment:
- Travel vouched.
- Travel unvouched.
- Subsistence vouched.
- Subsistence unvouched.
- Site-based employees (including “Country money”).
- Emergency travel.
- Eating on site.
It is worth adding that in a situation where an employer is paying the expenses directly to the provider such as company credit cards, these payments do not have to be included in the report.
How will payments be submitted?
It is important to know how to submit the new enhanced reporting. There will be a new facility within Revenue Online Service (ROS). It is worth noting that this new facility will resemble the already existing payroll reporting facility.
Revenue has claimed that this new legislation is phase one and it is likely that more enhanced reporting will be introduced in the upcoming years.
The Webexpenses system will be able to help users. The system will create a custom report for the expense payment as soon as it is submitted.
Benefits of the enhanced reporting for businesses
One of the main benefits listed by Revenue themselves, suggests that it will aim to increase visibility for employees about non-taxable payments. The idea is that these new reports will allow employers to keep an eye out for any potential areas where you may be overspending.
From Revenue’s perspective, the enhanced reporting creates more availability so they can pay more attention to the companies that are not reporting properly.
The extensive reporting functionality within the Webexpenses system will serve users with a valuable resource for your business, not only saving time but also ensuring compliance with the latest legislation.
How to prepare your business for the incoming legislation updates
With the legislation being implemented on Monday 1 January 2024, companies need to have a plan in place.
Review your current system in place now to make sure you will be ready for the incoming changes. The new legislation will likely increase administrative work within your organisation due to the real-time reporting element.
With Webexpenses’ custom real-time reporting feature, it will allow your business to quickly and accurately adhere to the new regulations, providing a comprehensive solution for expense management and reporting.
If you still have further questions on the upcoming legislation change, Revenue is offering webinars on multiple dates up until November. These webinars will look to give out more information and an overview from a user perspective on the new legislation. As well as constantly updating their site with any new updates which you can access here. If you are unable to attend the webinars, recordings will be posted on the website during November.
If you are not a current Webexpenses customer but would like to find out more about how the system can help your business, please fill in the form below.