The Taxsaver scheme is a fantastic way to keep your employees happy, saving them money each month on their commute and freeing up Car Parking spaces!

Your employees can achieve significant savings on the cost of commuting when they receive their Annual or Monthly ticket, up to 52%.

This system benefits everyone as your company will also save 10.75% on Employer PRSI  when you make this deduction from salary payments.

There are several ways you can assist your employees in receiving a Taxsaver Ticket:

Salary sacrifice Example

Employees can reduce their gross salary by the cost of their chosen ticket and will therefore reduce the taxable element of their salary: 

• Employee earns €30,000 Gross Salary
• Annual ticket costs €1,800 and is deducted from their Gross Salary
• New Taxable salary €28,200

In place of cash bonus

Employees can reduce their cash bonus and receive a taxsaver ticket to the same value.

• Employee receives an Annual bonus of €2,000
• Annual ticket costs €1,800 and is used as part of the bonus
• Amount of Bonus Taxable €200

Receiving a taxsaver ticket in place of a cash bonus offers regular commuters an ideal tax saving method of payment. 

Addition to salary

This is a popular option for employers involved in a staff retention process. It is also a great way of reducing the number of car parking spaces needed.

Revenue terms and conditions

• There must be a bone fide and enforceable alteration to the terms and conditions of employment (exercising a choice of benefit instead of salary).
• The alteration must not be retrospective and must be evidenced in writing. A sample alteration form is available Here 
• There must be no entitlement to exchange the benefit for cash.
• The choice exercised (i.e. benefit instead of cash) cannot be made more frequently than once a year and then only with the consent of the employer

The full text of the Revenue Commissioners Tax Briefing document can be found on www.revenue.ie

Want to Save a massive 36% when parking at the train station? Click Here for more information!