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Experts,
The Company pays me Bonus every 3 months on top of my Salary, and it is taxed by 41%
I think that may only be if all employees are entitled to the same benefit/bonus?the boss told me that they can use it for things like Gym membership and it would not be taxed
I do not want Gym membership, so I am looking for other options to get the full bonus
Any Advice?
10.5 Sports and Recreational Facilities
Facilities provided on the employer’s premises
10.5.1 Where sports and recreational facilities are made
available on the employer’s premises for the use of
employees generally, a taxable benefit is not treated as
arising. The facility must be available to all employees.
Where the facilities are not available to all employees
there is a taxable benefit. The taxable benefit should be
computed by apportioning the running costs in a
reasonable manner between those employees entitled
to avail of the facilities.
Corporate Membership paid by the employer
10.5.2 Where a ccrporate subscription to sports or
recreational facilities is paid by an employer on behalf of
an individual employee or specified employees, the
amount paid must be treated as notional pay for PAYE
and PRSI purposes.
Surely a gym membership or something similar would be taxed as BIK?
AFAIK your company can give you an annual bonus of about €250 tax free
(Post crossed with Clubmans more detailed response - shouldn't go and get a cup of tea in the middle of a post!)
Experts,
The Company pays me Bonus every 3 months on top of my Salary, and it is taxed by 41%, the boss told me that they can use it for things like Gym membership and it would not be taxed
I do not want Gym membership, so I am looking for other options to get the full bonus
Any Advice?
Regards
It won't - the small gift BIK exemption of €250 is an annual one so you would be liable for BIK tax/PRSI/health contribution on the other €750.Now if you are getting a bonus 4 times a year I dont know how that would work.
Or some other gift worth up to €250:Up to 250 tax free only applies if the bonus is in the form of a voucher.
2.3 Small benefits
Where an employer provides an employee with a small benefit
[that is, a benefit with a value not exceeding €250 (€100 prior
to 1 January 2005)] PAYE and PRSI need not be applied to that
benefit. No more than one such benefit given to an employee
in a tax year will qualify for such treatment. Where a benefit
exceeds €250 (€100 prior to 1 January 2005) in value the full
value of the benefit is to be subjected to PAYE and PRSI.
SNAPIt won't - the small gift BIK exemption of €250 is an annual one so you would be liable for BIK tax/PRSI/health contribution on the other €750.
What about getting the bonus as a pension topup? Update: this point crossed with threeticks!
The annual €250 "small gift"
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