According to the Revenue Commissioners, employees who work from home or otherwise known as e-workers, fall under one of the following categories:
- Work from home on a full time or part time basis
- Work some of the time at home and some of the time in the office
- Work while on the move with occasional visits to the office
The Revenue Commissioner has set specific tax guidelines for e-workers in relation to employees using both information and communication technologies located outside the office.
Computers and Equipment Costs to e-Workers
If an employer provides equipment to the employee such as computers, printers, scanners, software, etc. for the primary purpose of business, employees will not face a benefit-in-kind charge for the use of this equipment.
Home Expenses for e-Workers
Employees incur a certain level of cost when working from home such as additional heating and electricity costs. Employers can make tax free payments of up to €3.20 per day to e-workers which cover the cost of any additional heating and electricity. This only applies to e-workers and not to individuals who bring work home with them in the evening etc…This does not prevent employees from making any specific explains claims if expenditure is in excess of this amount.
This article has only specifically discussed the tax implications on various aspects of e-Workers that are employed by an Irish company and where the e-Worker resides within the State. There are other considerations to e-Workers such as using a car for work purposes and tax guidelines around motorcycle or bicycles used for work purposes. Another common scenario is employees working within Ireland for companies located outside the country.
Payroll tax law is a vast and complex area of business. It takes years of skills, training, and practice to identify and understand where an employee/employer should be paying taxes and where they are exempt. Organisations are quickly realizing that allowing the experts manage their payroll services is a far more opportunistic way of managing this area of the business allowing owners and management to save time and money.
Contact Paycheck Plus today for a consultation on whether you could benefit from outsourcing your payroll.
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