- By Andy Flower
- Published 11/9/2012
The primary objective of the TaxSaver Commuter Ticket Scheme is to encourage the use of public transportation among the citizens of Ireland. For this, the employers need to register with a third party provider to get monthly or annual travel tickets for their employees. Here is a brief overview of the way in which this arrangement works.
The employer registers with the third party provider of Dublin Bus and Irish Rail tickets. The provider may also provide travel saver tickets for other modes of transportation approved for the scheme.
The third party provider creates a microsite for your organisation. You supply the link of this site to your employees. Every employee is eligible for this scheme. The only condition is that the employer gets the tickets for them.
The employees visit the microsite created by the third party provider and selects the mode of transport they prefer to use for their work-related journeys. This may be bus, train, coach or LUAS.
The employees choose the type of travel tickets they require for their regular commute; they may choose annual or monthly tickets to travel by bus, rail, coach or LUAS. They submit the application for the tickets on the microsite.
The third party provider sends the invoice for the tickets to the employer and the purchase agreement to the employees. The employer needs to pay for the tickets and the employees need to read the agreement, sign it and send it to the third party provider.
The third party provider sends the travel tickets to the employees after the payment is made by the employer. You may start using the tickets to commute between your home and office as soon as you get these.
The employees pay back the amount as per the terms of the salary sacrifice arrangement. This agreement makes the travel tickets part of the salary package of the employee. With this, the employer and employee save on the taxes and PRSI payments.
The next question is – how do you find a third party provider to participate in the scheme? It is possible to find a competent service for this purpose with the use of online resources. You need to keep in mind certain points when choosing a service for participating in the travel saver scheme.
Make sure the service offers all types of commuter tickets. Whether your employees require monthly or annual bus, coach, LUAS or train tickets, the service must provide all types and combinations of tickets.
Make sure the service offers a user-friendly process. The availability of bus and train tickets online makes the process easier for the employees. Opt for a third party provider that offers this advantage.
Make sure the service offers the appropriate tax advantages. The tax and PRSI advantages for the employer and the employees participating in the scheme are quite considerable. Before you choose any service for this purpose, enquire about these savings. They must provide you an estimate of the savings. This will give you an idea about your benefits.
Andy Flower is an experienced supplier working on the TaxSaver scheme. He provides a brief overview of the way in which the travel saver scheme offers cheap train tickets and bus tickets for commuters. If you are planning to participate in the scheme and buy train tickets online, he suggests you to visit www.travelhub.ie/ for further information.