From 2025, Irish businesses will face increased scrutiny under the Enhanced Revenue Reporting (ERR) system, with Revenue Commissioners ramping up compliance checks to ensure accurate and timely tax reporting. This move by Revenue is to improve tax transparency and reduce underreporting.
ERR is a new reporting framework introduced by Revenue to capture real-time payroll and financial data from employers and businesses. It enhances the accuracy of tax collection by reducing discrepancies between reported and actual earnings.
Key elements of ERR include:
- More frequent and detailed reporting requirements.
- Closer alignment with real-time payroll reporting (PAYE Modernisation).
- Automated compliance checks to flag inconsistencies in reported figures.
- Greater employer accountability for payroll taxes, PRSI, and other deductions.
Revenue’s compliance focus aims to:
✔ Detect payroll and tax underreporting more efficiently.
✔ Prevent delays or errors in PRSI, PAYE, and USC filings.
✔ Improve transparency in tax administration and ensure fair contributions.
With increased digital oversight, businesses that fail to comply risk penalties, interest charges, and audits.
To stay compliant and avoid issues, businesses should:
✅ Review payroll systems to ensure accurate real-time reporting.
✅ Verify PRSI and tax deductions align with new PRSI rates (adjusted from October 2024).
✅ Ensure accounting software integration for seamless ERR compliance.
✅ Regularly audit financial records to detect errors before Revenue does.
✅ Train staff on new compliance requirements and best practices.
Revenue’s ERR compliance checks mark a shift toward stricter, real-time tax monitoring. Businesses should act now to update their reporting systems and stay ahead of potential audits. If you’re unsure about your compliance status, consulting with an expert can save you time, money, and stress.
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