Payroll Assist
TEL: 01-8996290      MOB: 086-0630906      EMAIL: info@payrollassist.ie
  • Home
  • Services
  • Budget 2016
    • Budget 2015
    • Budget 2014
    • Budget 2013
    • Budget 2012
  • FAQs
  • Sample Contract
  • Links
  • Forms
  • Contact Us
  • Blog

Tax Tip - Effect of a Salary Sacrifice Scheme on SCSB calculation

7/27/2011

0 Comments

 
When an employee receives a termination payment, an employer has the option to calculate how much of the payment can be paid tax free using the Basic Exemption or the Standard Capital Superannuation Benefit (SCSB) options. The following question often arises: What effect does a salary sacrifice scheme have on an SCSB calculation? 

Revenue have confirmed that if an employee opts for an approved salary sacrifice (travel pass, a bicycle under the Cycle to Work Scheme or Shares under an approved share scheme), this will not reduce their remuneration or emoluments for the purpose of calculating the SCSB in the event of an employee receiving a termination payment i.e. where an employee's gross salary of €50,000 is reduced by €1,000 in respect of a Cycle to Work Scheme, leaving him with taxable pay of €49,000, his gross salary of €50,000 can be used when calculating his average annual earnings over the last 36 months for the SCSB calculation.


0 Comments



Leave a Reply.

    Payroll Assist

    Outsource your Payroll.

    Archives

    March 2015
    February 2015
    September 2014
    August 2014
    July 2014
    April 2013
    November 2012
    August 2012
    July 2012
    May 2012
    April 2012
    January 2012
    August 2011
    July 2011

    Categories

    All

    RSS Feed

Powered by Create your own unique website with customizable templates.