A Good idea for you and your employees
While there is a legal requirement to provide employers with access to some form of pension, a good pension plan can also form an important part of any remuneration package in actively encouraging employees to consider a long term future with your company.
There are generally two company pension plan options available to employers when setting up a pension arrangement for employees – a defined contribution plan or a personal retirement savings account (PRSA). Both are tax efficient, flexible and accessible way to provide financial security for your employees in retirement.
One of the key advantages of a pension is the generous tax relief available.
Tax advantages for you?
As an employer you benefit from tax relief on any contributions that you make to your employees pension plan as these can normally by fully offset against corporation tax as a business expense. The net cost of a company contribution of €1,000 is effectively €875.
Tax advantages for your employees?
Employees can normally avail of generous tax relief on their contributions of up to 40% (subject to Revenue maximum limits) so that if they paid €100 into their pension each month the actual cost to them could be only €60
Employees also benefit from tax free growth on their investment, and a tax free lump sum at retirement.
It is important to setup a pension arrangement that takes your circumstances and requirements into account. Factors that could be considered include;
Additional Protection benefits
We can help you tailor a pension arrangement that suits both you and your employees’ needs. If you would like to find out more contact our financial team today.