Employer offering to pay part of my wages in vouchers, is this legal?

[cally1990]

We know all that.
The claim here was that there was inherent illegality in remuneration involving a non-cash benefit in kind. There is no basis to that claim.

The pertinent point here is that they favourable tax treatment of small benefits is lost if the benefits in question are paid in lieu of salary.

There is basis ?

The question

"My employer is offering to pay part of my wages in vouchers, is this legal?"


They cannot do that

The scheme isn't compliant as a NON Benefit in kind voucher if it is forms part of a salary sacrifice arrangement


I mean, by all means if the employee is happy then it works out better tax wise but it is not allowed and the employer is at risk in an audit

 

[T McGibney]

There is basis ?

The question

"My employer is offering to pay part of my wages in vouchers, is this legal?"


They cannot do that

The scheme isn't compliant as a NON Benefit in kind voucher if it is forms part of a salary sacrifice arrangement

There is a big difference between outright illegality and failure to meet a condition for favourable tax treatment, in which case the tax benefit is lost.

Surely there should be something to fear from Revenue as it appears from the post above by Cally1990 that the proposal by the employer in this case is illegal?

The claim I queried was one of illegality.

 

[cally1990]

There is a big difference between outright illegality and failure to meet a condition for favourable tax treatment.

The claim I queried was one of illegality.

Let's agree on "tax evasion" and be done

 

[T McGibney]

Let's agree on "tax evasion" and be done

Precisely. If an employer is dodging tax relating to an employment, it's their problem. The suggestion that their employee is somehow to blame or has something to fear is thankfully groundless.

 

[Salvadore]

The claim I queried was one of illegality.

It’s illegal to withhold someone’s salary unless they expressly agree to it.

 

[T McGibney]

It’s illegal to withhold someone’s salary unless they expressly agree to it.

But not to the point that the employee should have anything to fear from Revenue, as was alleged above.

 

[cally1990]

But not to the point that the employee should have anything to fear from Revenue, as was alleged above.

Correct

It's actually the employer (as per revenue documents ) who will be liable to pay the employees unpaid taxes

 

[Leper]

Frankly baffled by this. There is nothing here to suggest that the OP has anything to fear from Revenue.

And your terminology is terribly insensitive.

1. OK
2. Yes
3. No

 

[tessaC]

On regular basis? Or are you due a Christmas bonus and they are offering it as vouchers?

If it's the former, there is very little benefit from it. At present, you can get up to €1,000 in vouchers, which can be split into two. Any other vouchers are taxed as BIK. So after the first €1,000, there is no tax benefit. And you will be limited on where the money is spent.

If it is a Christmas bonus, go for it. I think @Gordon Gekko said he gets Dunnes vouchers as he spends so much there anyway and then he spends the saved money elsewhere. A dentist mate of mine even does vouchers for dental work so people can avail of the gift system (here you go, a voucher to get a root canal )

Thank you