Employers Guide to Benefit-in-kind
PAYE, PRSI and the USC must be operated by employers in respect of the taxable value of most benefits-in-kind and other non-cash benefits provided by them for their employees.
This guide provides employers (including persons treated as such) with information on the main benefits-in-kind and other non-cash benefits. The guide assists employers in determining -
- the amounts to be taken into account in calculating the PAYE, PRSI and USC liabilities
- the pay period(s) in which to take such amounts into account
The amounts to be taken into account are referred to as 'taxable benefits' or 'notional pay'.
Where an employer provides an employee/director with a small benefit* (that is, a benefit with a value not exceeding €500 (€250 up to 21 October 2015), PAYE, USC and PRSI need not be applied to that benefit. This treatment does not apply to cash payments, which are taxable in full. No more than one such benefit given to an employee in a tax year will qualify for such treatment. Where a benefit exceeds €500 (€250 up to 21 October 2015) in value the full value of the benefit is to be subjected to PAYE, USC and PRSI.
* A small benefit that is treated as a distribution of a close company is not within the scope of this exemption.
Use of terms 'employees' and 'PRSI' in this guide
All references in this guide to 'employees' include references to directors unless otherwise stated. In addition, references to 'PRSI' include references to Employers' PRSI and to the Universal Social Charge.
LoCall number for information or assistance
Should you require any information and assistance in relation to the matters dealt with in this guide please telephone LoCall 1890 25 45 65.
This guide gives practical guidance and is not intended to provide a legal interpretation of the legislation involved.
- Overview of System
- Application of PAYE and PRSI to Benefits
- Valuation of Benefits: General
- Private Use of Company Cars
- Private Use of Company Vans
- Free or Subsidised Accommodation
- Free Use of Assets (other than accommodation, company cars or vans)
- Benefit of Preferential Loans
- Third Party Benefits
- Other Benefits
- Records to be kept – Audit of Records
- Ready Reckoners
- Bus, Train or Ferry Passes
- Rules for Employees in the Motor Industry
- IT54 - Employees' Subsistence Expenses
- IT69 - eWorking and Tax
- Removal/Relocation Expenses (PDF, 85KB)