TAX SAVER TICKET
In 2000 the Office of the Revenue Commissioners introduced a TaxSaver Commuter Ticket Scheme as an incentive to encourage workers to use public transport and ultimately reduce traffic congestion. The Scheme works by reducing the cost of annual and monthly commuter tickets through Tax, PRSI and Universal Social Charge savings.
The employers and employees participating in the scheme sign a contract with each other agreeing to participate. The employer must then apply to City Direct for commuter tickets for the employees who have chosen to take part. Employees receive tickets either as part of their salary package (salary sacrifice), in lieu of an annual cash bonus, or as a benefit-in-kind. Savings arise because tickets are not subject to tax or PRSI.
Employees only have to pay tax and PRSI on the “money” portion of their salary. Employer PRSI and Universal Social Charge is also calculated on the “money” portion of the employee’s salary.
Employers can achieve PRSI savings of up to 10.75% and employees can save up to 52% of travel costs as a result of tax, PRSI & Universal Social Charge savings by participating in the TaxSaver commuter scheme.
City Direct provide Tax Saver Commuter Tickets offering unlimited travel on all our services and can be purchased by contacting our office at 091 860814 or by downloading our Application Form and submitting it to us at City Direct, Rahoon Road, Galway City.
*PRSI rates will vary depending on your contribution class