Overview

Enhanced Reporting Requirements (ERR) is a regulatory reporting obligation that requires Irish employers to submit detailed information about certain employee expenses and benefits to the Revenue Commissioners. It was introduced under the Finance Act 2022 (Section 897C).

DEFT helps you capture, track, and report this information accurately and on time. This article explains what ERR is, which expenses and benefits fall within scope, and why it matters for your organisation.

What is Enhanced Reporting Requirements (ERR)?

ERR requires employers to report specific categories of employee expenses and benefits to Irish Revenue. These are costs that may be tax-free or subject to special tax treatment, but Revenue requires visibility on how much your organisation is spending on them.

ERR reporting is mandatory if you have employees in Ireland and provide any of the covered expense categories or benefits listed below.

Which expenses and benefits must be reported?

Travel and subsistence

You must report all business travel and subsistence expenses, including:

• Vouched travel: Expenses with supporting receipts (accommodation, flights, transport)
• Unvouched travel: Mileage allowances and similar claims without receipts
• Subsistence: Meal and living expenses whilst travelling for business
• Site-based expenses: Costs for employees based at temporary work sites
• Emergency expenses: Unplanned costs incurred during business travel

Small benefits exemption

You can provide up to €1,000 per employee per year in small benefits, distributed across a maximum of two benefits. These must be reported to Revenue.

Examples include gifts, vouchers, or other minor perks that fall within the threshold.

Remote working allowance

If you pay employees a remote working daily allowance, you must report this. The current tax-free limit is €3.20 per day.

When must ERR be reported?

ERR data must be submitted to Revenue on or before the payment date for the expenses and benefits being reported.

This means you need to: - Capture the information when expenses are incurred - Enter it into DEFT promptly - Submit it to Revenue before making the related payment

Missing the submission deadline can result in penalties, so timely reporting is important.

Who needs to report ERR?

Your organisation must report ERR if you: - Employ staff in Ireland - Provide any of the covered expenses or benefits listed above - Are registered with Irish Revenue

Even if you provide only one of these categories, ERR reporting applies.

How does DEFT help with ERR?

DEFT simplifies ERR compliance by allowing you to: - Enter employee expenses and benefits easily - Track amounts against regulatory limits - Generate ERR reports for submission to Revenue - Maintain audit trails and records - Integrate with your ROS (Revenue Online Service) account for secure submission

This article provides foundational information. For step-by-step guidance on setting up and submitting ERR data, see the related articles below.

Key points to remember

• ERR is mandatory for most Irish employers
• Submission must happen on or before the payment date
• Accurate data entry is essential—errors can trigger Revenue queries
• DEFT helps automate and validate your ERR reporting
• Consult with your accountant if you’re unsure which expenses fall within scope

Frequently asked questions

Q: What if we don’t provide any of these expenses or benefits? A: If your organisation does not provide any travel, subsistence, small benefits, or remote working allowance, ERR may not apply to you. Consult with your accountant or tax adviser to confirm.

Q: Can we report ERR manually instead of using DEFT? A: You can report manually, but DEFT streamlines the process, reduces errors, and integrates directly with Revenue. Manual reporting is more time-consuming and error-prone.

Q: What happens if we miss the ERR submission deadline? A: Late submission can result in penalties from Revenue. DEFT helps you stay on track by making it easy to capture and submit data promptly.

Q: Are there different rules for different types of employees? A: ERR applies to all employees. However, the specific expenses and benefits your organisation provides may vary. Enter what’s relevant for each employee.

Q: How far back do we need to report? A: You report on a calendar-year basis. Typically, you’ll report for the current tax year. Check Revenue’s guidance for any historical reporting requirements.