Employee's pension contributions
Retirement Annuity Contracts (RACs)
Your employee may contribute to a Retirement Annuity Contract (RAC), which is a particular type of insurance contract approved by Revenue. They can be obtained directly from life assurance companies and through financial advisers.
You can deduct RAC contributions from your employee's gross pay under the net pay arrangement when calculating their tax. You should not deduct these contributions from your employee's gross pay when you are calculating their:
Limits for tax relief apply to the combined amount paid by your employee to all:
- Personal Retirement Savings Account (PRSA).