Your employees can achieve significant savings on the cost of commuting when they receive their Annual or Monthly ticket as part of their remuneration package.

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 – Deduct the cost of the ticket from their gross salary.

In place of a cash bonus – Deduct the cost of the ticket from their bonus.

Addition to salary – Provide the ticket as an addition to their current salary.

Salary sacrifice

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

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 to download 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 on taxsaver tickets can be viewed by clicking on the Revenue link below.

http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/passes.html

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.

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.