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Introduction

The Salary Sacrifice Scheme allows employees to receive certain benefits as part of their salary package, reducing their taxable income. 

  1. Purpose and Benefits:

    • Introduced to incentivise employees to choose non-cash benefits over cash.
    • Employees “sacrifice” a portion of their salary in exchange for specific benefits.

  2. Tax Implications:

    • Employees are not liable for PAYE, PRSI, or USC on the sacrificed amount.
    • Employers also benefit from reduced PRSI payments.
    • Revenue-approved arrangements ensure compliance.

Quick Setup

You can use the Quick Setup facility to set up Salary Sacrifice

Select the Employee you wish to set up the Salary Sacrifice in the Employee Screen. At the top of the screen, click the Quick Setup button

Enter Salary Sacrifice Details

In the Quick Setup Dialogue tick 'Salary Sacrifice'

A section will appear where you can enter the amount the employee is sacrificing per pay period. 

Click 'Save' to save the amount

Entering directly into the deductions grid

If you have used the Quick Setup utility, notice that it has created a new deduction in the Employee Deduction grid.

You could have also entered the details directly into the Deductions grid without using the Quick Setup facility.

Note that:

  • The Type column is Sacrifice
  • PAYE, PRSI and USC columns are all unticked

If you entered the details directly into the grid, do not forget to click Update Employee to save it.