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TaxSaver

TaxSaver Commuter Ticket Scheme

Cork Chamber’s recent Membership Transport Survey highlighted some interesting statistics regarding the uptake of Employee Transport Benefit Schemes.

Our survey indicated that almost 89% of businesses in the Cork region do not operate Employee Transport Benefit Schemes. Similarly, over 75% of employers and employees use a private car (single occupancy) for transport to and from work. This is a challenging figure in the context of the efforts of all stakeholders to develop a modern and efficient public transport network and deliver significant modal shift in Cork.

To address this issue, Cork Chamber and our regional partners are advocating the use of the TaxSaver Commuter Ticket Scheme. The scheme is an incentive designed to increase the use of public transport amongst commuters.

In Cork, the scheme is operated by Iarnrod Eireann and Bus Eireann in conjunction with the Revenue Commissioners. The scheme involves employers providing employees with bus and rail commuter tickets while saving on employer PRSI payments.

Participating employees benefit from reduced tax and PRSI payments.

Companies can save up to 10.75% in PRSI while employees can save between 31% - 52% in tax, PRSI and USC.

Over 2,500 companies are now purchasing Monthly and Annual tickets for their employees.

There are several ways companies can assist their 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.

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.

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.

For further information on the TaxSaver Commuter Ticket Scheme, please visit www.taxsaver.ie