Taxsaver Tickets
What are Taxsaver Tickets?
The TaxSaver Commuter Ticket Scheme was established in Ireland in 2000 as an incentive for workers in some parts of the country to use public transport. As an Approved Transport Provider, Matthews Coach Hire Ltd. can provide these tickets.
This incentive is seen as a positive way to encourage more people to avail of public transport in Ireland and to reduce traffic congestion. The employers and employees participating in the scheme sign a contract with each other agreeing to participate. The employer then applies for commuter tickets for employees who have chosen to take part.
The TaxSaver scheme is operated in conjunction with the Revenue Commissioners. The scheme involves employers providing employees (including company directors) with bus and rail commuter tickets while saving on employer PRSI payments. Employees participating in the scheme benefit from reduced tax and PRSI payments.
Employees receive tickets either as part of their salary package (salary sacrifice), in lieu of an annual cash bonus, or as a benefit-in-kind. Savings arise because tickets are not subject to tax or PRSI. Employees only have to pay tax and PRSI 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 up to 47% of travel costs as a result of tax and PRSI savings by participating in the TaxSaver commuter scheme.
For more information, please see CitizensInformation.ie.
