Revenue has introduced a new facility on the Revenue Online Service (ROS) to record advance payments for employee travel and subsistence expenses. According to the Tax and Duty Manual on enhanced reporting requirements (ERR) for employers, this optional administrative practice allows advance travel and subsistence payments to be treated as non-taxable at the time of payment. These payments are not subject to payroll tax deductions initially but must be reported under ERR when disbursed.
Once employees or directors incur the actual travel and subsistence expenses and submit their claims, employers are required to update their ERR submissions to reflect these actual expenses. This update ensures that the recorded advance payments align with the incurred expenses. This system facilitates cash flow management for employees and simplifies tax reporting for employers. Read more here.
