Video Overview Here
[ VIDEO: Explaining the blog post high level items ]
Why ERR (Enhanced Reporting Requirements)
Starting January 2024, Irish employers face new compliance landscapes with the introduction of Enhanced Reporting Requirements (ERR) by the Revenue. This new mandate, part of the Finance Act 2022, aims to enhance transparency and governance in employee benefits and expenses reporting.
Overview of ERR
There is a new Expenses report for Payroll required for Revenue (Irish Tax Office). This report is separate to VAT (Sales Tax) or PAYE (Payroll Tax), the report is called the ERR – Enhanced Reporting Requirements.
Revenue is looking for you to submit a report of the totals spent per employee for each of the below categories and subcategories around expenses. .
This isn’t a new way of doing expenses, you’re just categorising them.
The report just provides totals for each employee for each category and sub-category, not individual.
Two Types of Expenses
There are two types of expenses in Bullet
Expenses Vouched: These are expenses with receipts that are currently added in Money Out / Add Bill or Expense.
Expenses Unvouched: These are expenses without receipts that are currently added in Money Out Mileage and Money Out Add Subsistence.
Basically if you have a receipt it’s vouched, as in you can vouch for the expense with a receipt, if you can’t like mileage, it’s unvouched. I don’t have anything that can vouch for it.
When Do The Expenses Need To Be Reported
When you pay the employee back, not when the expense was created. In Bullet you reimburse the employee when you do a payroll run. To make it easy we’ve included the ERR report into the payroll report. So you only have to do one submission, the payroll one you’ve been doing.
If you are doing payroll for Jan (01 Jan to 31st Jan ) only expenses in between the 01 and 30th will be included in the ERR Report.
Enter your expenses before you enter payroll.
How Do I Submit The ERR Report?
You just do your expenses in Bullet as you normally do and Bullet will capture the extra data Revenue needs. We’ve included it in the Payroll workflow to keep everything nice and simple.
[ VIDEO: Showing how you do it in Bullet ]
Categories For ERR (Enhanced Reporting Requirements)
Category: Travel & Subsistence
Sub Category:
Travel Vouched (receipt)
Travel Unvouched (no receipt)
Subsistence Vouched (receipt)
Subsistence Unvouched (no receipt)
Site Based Employees
Emergency Travel
Eating on Site
Category: Remote Working Daily Allowance (this can be a fixed amount or data in the hint tips)
Category: Small Benefits Exemption
Category: General Expenses (current in Money Out, Add Bill or Expense)
The report just provides totals for each employee for each category and sub-category, not individual.
Workflows
How the categories will be organised in the workflows. The vouched items will have a receipt so will go in Money Out > Bill. The unvouched items won’t have a receipt so they’ll go in Money Out > Subsistence
Money Out – Add Bill
Travel & Subsistence
- Travel Vouched (receipt) (This appears in Money Out Bills – as it will have a receipt)
- Subsistence Vouched (has receipt) (This appears in Money Out Bills – as it will have a receipt)
Money Out – Add Subsistence
Travel & Subsistence
- Travel Unvouched (no receipt)
- Subsistence Unvouched (no receipt)
- Site Based Employees
- Emergency Travel
- Eating on Site
Remote Working Daily Allowance
Small Benefits Exemption
General Expenses (current in Money Out, Add Bill or Expense)
FAQ
More Reading?
Here is the link to Revenues article on ERR Reports
How should I manage my expenses now in Bullet?
Just like normal, we’ve built the extra data sets that Revenue looks for in the current forms, and we’ve added the ERR report to the normal payroll workflow. So very little change for you.
Where can I see my expenses?
In the normal places, Money Out
If I fill in that subsistence form for a particular amount will it show up on Bullet to be reconciled?
Expense items that have to be reimbursed to an employee have already been paid by the employee. So they get lumped into the expenses total which gets added to the payroll net amount. All you will need to reconcile is the payroll payment, which will include the expenses.
A breakdown of the expenses can be found in Employees, Employees Name, Expenses Report.
Will expenses be automatically submitted to revenue?
The expenses will be submitted to revenue when you submit your payroll to Revenue. We’ve merged the ERR report to the payroll report.
What is an ERR report?
The report just provides totals for each employee for each category and sub-category, not individual expenses.
Why is it better not to do expenses on the same day as payroll?
Let’s say you’re running payroll for Jan and you’re entering it into Bullet on the 31st of Jan so the last day of Jan. So from 01 Jan to the 31st of Jan. We cut off payroll at 12pm on the 30th of Jan. Therefore if you enter expenses for the 31st they wont be included in Jans payroll be shifted to Feb. If you are doing payroll on the 31st of Jan for Jan, just enter the expense for the 30th of Jan.