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Benefits - how are they taxed?

  • 11-08-2011 2:54pm
    #1
    Closed Accounts Posts: 10


    I've been offered a new job along with benefits like healthcare, pension etc.
    Will I have to pay tax on this?


Comments

  • Closed Accounts Posts: 5,451 ✭✭✭Delancey


    To my knowledge private health subscriptions when paid by an employer are taxable as are naturally benefits like company car.

    Pension contributions would generally not be taxed subject to meeting certain revenue limits , of course pensions when paid count as income and are taxed same way as salary.


  • Closed Accounts Posts: 10 Eniac


    Cheers. Just wondering how I'd pay the tax. The employer will pay for healthcare but does a tax come out of wages then?
    Benefits sound great and all but if you're taxed on them, they mighn't be too good after all.


  • Registered Users, Registered Users 2 Posts: 2,645 ✭✭✭krissovo


    All benefits are taxed as previously stated and in your payslip you should see separate entries for each benefit and there value. This is added up and the tax deducted as a whole.

    Given that health contributions are typically less than a €100 per month the only potential issue is if it pushes you into the next tax bracket and even then the impact is relatively small.

    It get complicated when you have a host of benefits like car, bonus, dental, child care, share options etc etc.


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