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