Mar 2015
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TaxSaver Commuter Ticket Scheme
Established in 2000, the TaxSaver Commuter Ticket Scheme is an incentive for workers to use public transport and is seen as a way to encourage the use of public transport. The scheme is operated in conjunction with the Revenue Commissioners. The scheme involves employers providing employees with bus and rail commuter tickets while saving on employer PRSI payments.
The employers and employees must sign a contract agreeing to participate. The employer then applies for commuter tickets for employees. Information on tickets are available from Dublin Bus, Irish Rail, Bus Éireann, Luas, and approved private operators websites. Detailed information sheets on each type of ticket are also available for distribution to employees.
Employees participating in the scheme may receive the tickets through salary sacrifice, in lieu of an annual cash bonus, or as a benefit-in-kind. It costs employers and employees nothing to join the scheme itself.
Through salary sacrifice employees receive TaxSaver commuter tickets as part of their basic salary package. They then benefit from reduced Income Tax, PRSI and Universal Social Charge (USC) payments due to the fact that the cost is a tax allowable deduction.
Employees only have to pay tax, PRSI and USC on the "money" portion of their salary. Employer PRSI is also calculated on the "money" portion of the employee's salary.
Employers can achieve PRSI savings of up to 10.75% and employees can save between 31% and 52% of travel costs as a result of tax, PRSI and USC savings by participating.
Companies must keep a receipt of purchase and a copy of the ticket for their tax records.
