Use of facilities (sports, recreational, childcare and car-parking)
Crèche and childcare facilities
If you provide free or subsidised childcare facilities at work for your employees, this is a Benefit-in-Kind (BIK). An employee is chargeable on the benefit, under the Pay As You Earn (PAYE) system, to:
The value of the benefit for tax purposes includes the insurance and maintenance costs of the premises. It should also include the value of any other costs you have to pay to run the facility.
If you pay or subsidise the cost of an independent crèche or child care facility for your employees, this is a BIK. Employees must pay Income Tax, PRSI and USC on this benefit.
If you make a block payment to a crèche or childcare facility, this is a BIK. The employees that use the facility must pay Income Tax, PRSI and USC on this benefit.
The value of the benefit should be divided between the employees that use the facility. This benefit is taxable and should be based on the number of children each employee has.
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