Update Regarding Enhanced Reporting Requirements (ERR) and Construction Workers Sick Pay Scheme (CWPS)
Keeping up to date with the latest regulations, we dive into the recent changes announced by the Revenue Commissioners regarding Enhanced Reporting Requirements (ERR) and the new adjustments to the Construction Workers Sick Pay Scheme (CWPS). These updates, effective from July 2024, bring significant implications for employers and employees alike. Stay informed and ensure your business is ready to adapt to these new requirements.
Enhanced Reporting Requirements (ERR)
The Revenue Commissioners has informed employers and agents of a welcome extension to their support program for compliance with the ERR reporting obligations. This program, designed to assist with the implementation of the new system, will continue until the end of December 2024. Consequently, Revenue will not be pursuing penalties for non-compliance during this extended support period.
While Revenue acknowledges the ongoing adaptation to ERR, it is nonetheless essential to highlight the extensive range of resources they have made available to employers. These resources provide comprehensive guidance on understanding and embedding the new reporting requirements. In light of the readily available support, Revenue expects employers to take all necessary steps to ensure their full compliance with the ERR obligations by now.
From 1 July 2024, Revenue expects all employers providing reportable benefits to make an ERR submission on or before the date the benefit is provided or paid to the employee
Employers who commence filing ERR submissions after 1 July 2024, will be expected to backdate its filings to 1 July 2024.
Revenue will be closely monitoring ERR submissions to identify employers with potential reporting obligations who have not yet filed their initial reports. Revenue will then engage with these employers to establish their compliance status with the ERR requirements.
Construction Workers Sick Pay Scheme (CWPS)
In response to a recent recommendation issued by the Labour Court, the Construction Workers Sick Pay Trust (CWPS) and its Trustee Board have ratified an increase in the employer sick pay contribution rate to the CWPS. This change is accompanied by corresponding operational adjustments designed to reflect the Labour Court's recommendation.
It is crucial to note that both the increase in employer contribution rate and the associated operational changes for the CWPS became effective on July 1st, 2024.
| Standard Contribution Rates from 1 July 2024 | Employer | Employee | Total |
|---|---|---|---|
| Pension Contribution | €29.78 | €19.87* | €49.65 |
| Death in Service Contribution | €1.17 | €1.17* | €2.34 |
| Sick Pay Contribution | €2.37 | €0.63 | €3.00 |
| Standard Contribution Total | €33.32 | €21.67 | €54.99 |
*PAYE Allowable
| Standard Contribution Rates from 5 August 2024 | Employer | Employee | Total |
|---|---|---|---|
| Pension Contribution | €30.82 | €20.57* | €51.39 |
| Death in Service Contribution | €1.17 | €1.17* | €2.34 |
| Sick Pay Contribution | €2.37 | €0.63 | €3.00 |
| Standard Contribution Total | €34.36 | €22.37 | €56.73 |
*PAYE Allowable
While the 3-day exclusion period for claiming sick pay remains unchanged, the daily payout structure has been revised. Under the new structure, the daily payout for the first five days of a claim within a calendar year is now €125. Following the initial five days, the daily payout reduces to €50, with a maximum annual payout remaining at 50 working days per calendar year.
If you would like to discuss any of the above in detail please contact Phil in our payroll department.