- By Steven Hayes
- Published 08/3/2012
If the majority of your employees use different means of public transportation for their daily commute between work and home, you may choose to participate in the Government Tax Saver Scheme that saves taxes and PRSI payments on the travel tickets. Before you consider participation in this scheme, here are a few details regarding the process in which it works and the advantages it offers.
You, i.e., the employer, need to register your business with a provider participating in the Travel Saver scheme. The registration process is usually completed online and involves a few easy steps. After the registration is complete, the provider sets up an online account for the employees of your company. You need to circulate the details of the scheme and the account to your employees and encourage them to participate.
The employee uses the online account to choose the mode of transport they usually use for work-related journeys. The next step involves the use of this account to choose the type of tax saver tickets suitable for their journeys. For example, if they use the bus service for their work-related journeys, they need to choose the preferred bus tickets on monthly or annual basis from this scheme and apply for it.
Your travel scheme partner would send you the invoice for the tickets applied for by the employees. A purchase agreement is also sent to the employee for completion. After the formalities are complete and you have paid for the tickets, the employee receives the tickets he/she applied for. You need not bother about the details of the procedure if you choose a competent travel scheme partner.
As the scheme operates on the basis of salary sacrifice arrangement between the employer and the employee, both the parties are capable of saving on taxes and PRSI payments. The salary sacrifice arrangement decreases the gross income of your employees, making it possible for you to save on the PRSI payments for each employee. Make sure you understand the terms of the scheme before you participate in it.
Another added advantage of participating in this scheme is the use of this benefit for recruiting and retaining employees. When your employees avail of travel tickets that offer tax savings, they would prefer to stay in your company rather than moving on to some place else. The reason is simple; the provision for tax saver commuter tickets would lower the costs associated with regular travel to and from work.
Moreover, it also creates an environment-friendly image of your company. When your employees use public transportation for work-related journeys instead of self-driven individual cars, they reduce carbon emission. This ensures that you help reduce the adverse effects of automobile generated pollution on the environment. This also decreases traffic congestion as there are fewer cars on the road.
Consider the advantages of the scheme before you decide anything about participation. If you feel that the scheme is beneficial for the company as well as the employees, choose a partner and register with them to avail of the advantages.
Steven Hayes is an experienced supplier working in the TaxSaver scheme. He provides tips and suggestions for companies looking for more details about tax saver travel ticket. If you are looking for details regarding bus or train tickets online, he suggests you to visit www.travelhub.ie/ for further information.
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