Taxation of employer benefits

How employer benefits are taxed

If you are an employee and you earn more than €1,905 per year, you must pay tax on the taxable employer benefits you receive. The income limit does not apply to a company director.

Most employer benefits you receive are added to your pay and taxed in the same way. Your employer deducts Income Tax (IT), Universal Social Charge (USC) and Pay Related Social Insurance (PRSI) on the value of the benefit.

The value of the benefit is generally the higher of:

  • the cost to the employer of providing the benefit
  • the value of the benefit if it can be converted into money or money's worth less any payment you make to your employer for the benefit.

There are special rules for working out the value of some benefits:

Next: Taxable employer benefits