Reward your employees with up to €500 tax free under the “Small Benefit Exemption Scheme”
Are you looking to reward your employees with a bonus this Christmas?
Did you know under the existing Benefit-in-Kind arrangement, an employer can provide an employee with a single “non-cash” benefit up to €500 without it being subject to PAYE, USC and PRSI.
“This is effectively a saving to an employer of up to €700”
- The treatment does not apply to cash payments, which are taxable in full.
- No more than one such benefit given to an employee in a tax year will qualify for such treatment.
- If more than one benefit is given in a tax year only the first benefit will qualify under the Small Benefit Exemption Scheme, even if it is less than €500.
- The maximum value for this benefit is €500 (up from €250 since 22nd October 2015).
- Where a benefit exceeds €500 in value the full value of the benefit is to be subjected to PAYE, USC and PRSI.
- The benefit cannot form part of a “salary sacrifice” scheme.
For more information about this please feel free to contact me using the details to your right.