Employers Guide to Benefit-in-kind

Introduction

With effect from 1 January 2004, PAYE, PRSI and the Health Contribution 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 Health Contribution 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'.

The guide also identifies (in Overview of System - Small Benefits and relevant paragraphs of Other Benefits) benefits to which the PAYE system does not apply.

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 Health Contribution.

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.

Legal Disclaimer

This guide gives practical guidance and is not intended to provide a legal interpretation of the legislation involved.

Contents

Further information

February 2008

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