Benefits and Allowances

Alasdair MacNeill
Alasdair MacNeill
  • Updated


Before adding employees to Talexio, you may wish to set up benefits which can then be assigned to your employees. Before doing so, it is recommended that you have your company's organisation structure, position titles, and job schedules already set up.

Benefits are adjustments that are given periodically as part of an employee's compensation package (for example, mobile allowance, travel allowance), or as ad-hoc adjustments to a particular payroll (for example, performance Bonus). These can be taxable or non-taxable.



In order to add new, or manage existing Benefits, you will need the Manage Benefits permission. If you want to add Benefits to an employee's position, you will need the Manage employment position history permission, as well as either the View all employee data or Manage all employee data permissions. 


Adding Benefits and Allowances

You may view your company's Benefits in the Settings section under the tab Benefits. By default, you will find a number of preset benefits, such as Use of Car allowance and Car Cash allowance.

Changes done to existing benefits will be applied to employees to whom such benefits are already assigned, but the changes will not affect/change any existing locked payrolls.


CAT 1 Tax Capping

The CAT 1 allowance is 50% taxable. However, this is capped at €1,170 per year. Therefore, an employee may be entitled to a CAT1 allowance of €2,340, half of which is non-taxable. 

This is done automatically by Talexio when the CAT1 allowance is added to the employee's position history. Therefore, if you had to input an amount in excess of €2,340 to the employee's position, €1,170 of this portion would be tax free. Anything else would be fully taxable. 

For example, an employee has €2,500 Car Cash Allowance in their position. 

Each month, the employee will be paid €208.33. 50% of this will be taxable (€104.17 taxable, and €104.17 tax free). This will continue each month until a total of €1,170 non-taxable is reached. From then on, anything else will be automatically taxable.

However, it is important to note that this automatic capping does not happen if you had to manually add CAT1 Car Cash Allowance to an individual payslip (rather than through the position).

For example, the employee does not have any allowances in their position, but in January, the Payroll Admin adds an ad-hoc adjustment of €250 euro. Half of this will be non-taxable (€125). However, if the Payroll Admin continues to add this amount to each payslip, the system will keep it at 50% taxable for each payslip, as the capping only occurs when the annual amount is added to the position.  

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