IPASS 2023 - TOP TAKEAWAYS FOR YOUR PAYROLL

Annual IPASS conference is one of key points in NKC payroll department diary. 

IPASS 2023 conference featured keynote speakers and panel discussions by renowned experts and thought leaders in the payroll industry. It has provided valuable insights into emerging trends, technological advancements, and regulatory changes impacting  payroll in the near future.

Below you will find our top takeaways that may impact payroll in coming months.

iPass payroll conference 2023 NKC payroll

PAYE enhanced reporting requirements

The introduction in Finance Bill 2022 of Section 897C of the TCA 1997 will require employers to report to Revenue details of the following payments made to employees and/or directors. The requirement to provide PAYE enhanced reporting requirements will commence in 2024. The categories of reportable benefits are:

  • Small benefit - total value of the tax-free benefit or vouchers an employer can give an employee per year has increased from €500 to €1,000. The number of qualifying vouchers or incentives per year has also increased from one to two

  • Remote working daily allowance - a payment of not more than €3.20 per day to an employee by his or her employer in relation to the days the employee performs the duties of their employment from their residence where no tax was deducted.

  • Travel and subsistence payments - a payment made to an employee by their employer in respect of expenses for travel or subsistence incurred by the employee where no tax is deducted.

Reporting will be required on a monthly basis and will align with the standard payroll process under Real Time Reporting.  The introduction of the additional reporting reinforces Irish Revenue’s focus on obtaining real time data from employers in respect of employee benefits, emphasising the importance of the ongoing monitoring of these benefits.

Work Life Balance

In April 2023, the Work Life Balance and Miscellaneous Provisions Act 2023, was signed into law. There is currently no set date as to when this legislation will come into force, however, it is anticipated that it will be in the coming months. It is envisaged that a number of the rights in this Act will be staggered, however measures such as breast-feeding breaks and caring leave will be brought in sooner.

It is critical for employers to understand the scope of this Act and the changes that will be required in updating their policies.

The Act aims to support better work/life balance for all employees, but particularly employees with family and caring duties and victims of domestic abuse, with the introduction of a range of new rights.

The NKC team at the iPass payroll conference 2023

New rights for employees

The Act introduces the following new rights for employees:

  • The right to request flexible working arrangements for parents and carers.

  • The right to request remote working for all employees - It’s important for employers and employees to note that the Act only gives employees the right to request remote work and employers the obligation to consider and respond to such requests within a 4 week period. It does not, however, give all employees a right to work remotely.

  • Five days of unpaid leave for medical care purposes for parents of children under 12 and for carer.

  • Five days of paid leave for victims of domestic violence.

  • Breastfeeding breaks for up to two years (this was previously only 26 weeks).

Whilst the primary legislation is available, many of the key considerations of the Act will be provided for in the anticipated regulations and Code. Employers will need to ensure existing remote working policies meet the minimum obligations set out in the Act. They will also need to ensure the right to request flexible work for caring purposes is included in their policies.

Auto-Enrolment

NKC team at the iPass payroll confernce 2023 talk

The aim of Auto-enrolment is to deliver security, equity, choice and clarity to the Irish Pension System for each individual. It also aims to increase pension coverage, particularly among low to middle income groups and to ensure that State support for pensions is equitable and sustainable. Through auto-enrolment, employers must contribute to a workers’ pension plan. Employees will have access to a workplace pension plan which is co-funded by their employer and the State. Workers who are not currently part of a pension plan, aged 23 years and older and earn €20,000 or more per year will be automatically enrolled into the new workplace pension plan.

A key feature of the system is that although participation is voluntary, it operates on an ‘opt-out’ rather than an ‘opt-in’ basis. If after six months a worker wanted to opt-out, they can but they will be re-enrolled again after two years. The aim is to encourage workers to recognise the importance of saving for retirement through a pension plan.

Employees will be automatically enrolled into a new pension scheme unless they are a member of their employers’ scheme and that scheme provides higher contribution levels or is a Defined Benefit Scheme. Contributions to the new scheme will be made within a band of earnings, with earnings below and above certain thresholds exempt.

  • Employees will be required to make a fixed percentage contribution.

  • In line with the Government commitment, a State contribution equal to 33 per cent tax relief will be provided in respect of pension contributions made by the employee (within a band of earnings).

  • Employers will be obliged to provide a contribution equivalent to the State contribution.

PAYE Compliance interventions

Revenue Audits or Interventions are a fact of life and can be a traumatic experience for the unprepared. In 2022 the Revenue Commissioners published a new Code of Practice for Revenue Compliance Interventions (‘Code’). Many aspects of the Code are now supported by legislative measures up to and including Finance Act 2021.  While the new Code sets out how Revenue will conduct interventions, it is also intended to inform taxpayers of the process and there is no doubt that it will have a major bearing on how audits and other interventions are conducted in practice.

Under the revised Code there will be 3 intervention levels which reflect Revenue’s intention to provide a graduated response to risk and taxpayer behaviour. The clear message is that taxpayers should carry out regular reviews of their tax affairs and address any issues prior to contact from Revenue.

The key changes from the previous Code are:

  • Three tier designations of Revenue interventions,

  • Introduction of the Risk Review category of intervention.

The rules regarding the application of interest and penalties have not changed under the new Code. Statutory interest continues to be sought by Revenue in respect of all undisclosed/unpaid liabilities.


If you would like to discuss any of the above in detail please contact Phil in our payroll department.

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