Security assets or services, and indemnity insurance

There may be a serious threat to your employee because of his or her employment with you. Where this occurs, you may choose to pay for security assets or security services for your employee. These payments are not taxable benefits in kind.

A security asset includes equipment or structures (such as alarms, security cameras and security gates). It does not include any form of vehicle, a home or land.

The exemption from benefit in kind does not apply to security measures taken against:

• general criminal threats which all citizens face
• burglary
• or
• threats separate to your employee’s work.

Indemnity insurance

You may pay indemnity insurance to provide cover for your employees or directors. The tax treatment of this payment depends on who the policy provides cover for. A policy can either:

• provide cover for an employee or director personally (proceeds from the policy would be paid directly to the employee or director)
• or
• provide cover for your business (proceeds from the policy would be paid to your business).

Policy provides cover for the employee or director personally

Where the policy provides cover for the director or employee personally, the insurance costs incurred by you are a taxable benefit in kind. Your director or employee is chargeable on the benefit under the Pay As You Earn (PAYE) system to: 

• Income Tax
• Pay Related Social Insurance (PRSI)
• and
• Universal Social Charge (USC).

Where the policy provides cover for your business, the insurance costs incurred by you are not a Benefit in Kind.