Tax Paid by the Employer: The Tax-on-Tax Benefit

Full, partial and fixed arrangements

Full or partial employer-borne tax requires a tax-on-tax calculation. Indicate the arrangement in item f of Form IR8A; for partial cover, state the income on which the employer bears tax. A fixed tax allowance is taxable too. Use the official worked examples for the calculation and distinguish employer-borne tax from remitting an employee’s own withheld salary.