Tax Free Travel Passes
An employer may provide their employees with a monthly or annual bus or train pass without incurring a Benefit In Kind. The travel ticket may be purchased from State Companies such as CIE, Dublin Bus, Bus Eireann, Irish Rail, Luas, Dart etc or from a licenced private transport operator including ferry services operating within the State. For the exemption to apply, the employer must purchase the bus, train or ferry pass for the employee.
An employer may also provide travel passes through the Salary Sacrifice method whereby the employee agrees to have the cost of the pass deducted from Gross Pay before taxation is applied. This results in reduced PAYE, PRSI and USC for the employee and a reduction in employers PRSI. The scheme applies to employees and directors of the employer but not to family members. The scheme does not apply to car parking which may be purchases as part of a travel and parking combination ticket.
Further details of this scheme are available on the Revenue Website at http://www.revenue.ie/en/tax/it/leaflets/it11.html
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