Guidance on miscellaneous benefits updated

Revenue has updated the guidance on the provision of miscellaneous benefits to reflect Finance Act 2024. The changes introduced mean that from 1 January 2025, an “employer limit” applies to employer contributions to an employee's Personal Retirement Savings Account (PRSA).

The “employer limit” is the maximum amount an employer can contribute to an employee's PRSA without the contribution being considered a BIK for the employee. It is also the maximum contribution for that employee for which an employer can claim a deduction for tax purposes. This limit is 100 percent of the employee's emoluments in the year of assessment. Any employer contributions exceeding this limit are treated as a BIK and are therefore taxed as employment income.