Tax On Bonus

I

I{U}Ireland

Registered User
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67
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
 
I{U}Ireland said:
Experts,

The Company pays me Bonus every 3 months on top of my Salary, and it is taxed by 41%
Click to expand...

They probably should be deducting PRSI and health contribution too.
the boss told me that they can use it for things like Gym membership and it would not be taxed
Click to expand...
I think that may only be if all employees are entitled to the same benefit/bonus?
I do not want Gym membership, so I am looking for other options to get the full bonus

Any Advice?
Click to expand...

See the Revenue guides to BIK for information on the few exemptions available.

[broken link removed]
[broken link removed]
 
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!)
 
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.
Click to expand...
 
FredBloggs said:
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!)
Click to expand...

Up to 250 tax free only applies if the bonus is in the form of a voucher.

Other than that its taxable income.
 
I{U}Ireland said:
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
Click to expand...

Get your company the give you a voucher for something you want.
ie. sports shop, clothes shop, golf shop, hotel etc......
The max tax free for a voucher is 250.
Now if you are getting a bonus 4 times a year I dont know how that would work.
 
Pension contribution would come to mind assuming you have a pension.
If not why not use the bonus to start one.
 
threeticks said:
Now if you are getting a bonus 4 times a year I dont know how that would work.
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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.

What about getting the bonus as a pension topup? Update: this point crossed with threeticks!
 
threeticks said:
Up to 250 tax free only applies if the bonus is in the form of a voucher.
Click to expand...
Or some other gift worth up to €250:
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.
Click to expand...
 
ClubMan said:
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.

What about getting the bonus as a pension topup? Update: this point crossed with threeticks!
Click to expand...
SNAP
 
The annual €250 "small gift" tax exemption limit above applies to such vouchers too. Anything above that is assessable for BIK income tax and PRSI deductions via payroll.
 
Yes. Unless you get the bonus as a pension topup for example or one of the few other BIK exempt schemes. Have you not read the posts in this thread so far as they answer questions such as this.
 
You could get your employer to pay for your travel - if it's public transport you use, failing that, pension is the obvious and most efficient tax - break out there, it's twice as good a benefit as the SSIA was.
 
3V Credit Card Acceptable under BIK?

Hello,

I am wondering if 3V vouchers are acceptable for an employer to purchase under the BIK exemption scheme? I know One4All are ok but 3V can be more widely used.

Cheers.
 
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