Reward. Motivate. Save Tax.

Under Irish Revenue’s Small Benefits Scheme, employers can now reward employees with a non-cash bonus of up to €500 in value completely tax free each year. Provided certain guidelines are followed neither the company nor the employee will pay PAYE, PRSI or USI, potentially saving €653.65 in tax.

To qualify for the tax exemption, only one tax-free bonus may be paid to each employee in any one year. If more than one bonus is given in a year, it is only the first one that will qualify for tax-free status, even if this bonus is less than the €500 annual allowance – any used allowance cannot be carried over. The tax-free bonus must be paid in non-cash form.

There is no paperwork and no return to be made to avail of the scheme. Companies (or sole traders) are simply invoiced for the total value of tax-free vouchers ordered. The invoice is treated as a normal business expenses for accountancy purposes, and there is no need to adjust payroll in any way – provided the above rules are followed. Business owners and director can also benefit from the scheme.

4 Steps to Tax-Free Rewards

Budget

You can reward up to €500 in non-cash rewards per employee, so it’s up to you to set the actual amount.

Ask Why

You can simply give a tax-free reward as a way of thanks, or you can put a programme in place for employees to earn their rewards

Order

You can order any type of voucher (or non-cash gift), though most employees prefer multi-retailer vouchers like AllGifts.ie

Account

The reward invoice is put through the company accounts as an expense, and doesn’t affect payroll in any way.

Expert Analysis
Read the Latest News about Rewards

We’re Hiring!

Update: Position Now Filled Allgo needs to hire a friendly and capable Customer Service & Admin Exec If you’re the Customer Service & Admin person we’re looking for you’ll have: Have proven…

Read more

Tax-Free Rewards

How Employee Rewards can help Recruitment & Retention

With the unemployment rate down to 6.2%, the lowest rate for 10 years, it is no surprise that Recruitment & Retention will be the Top 2 HR Challenges in Ireland this year….

Read more

Apply Now!

We’re Hiring

Allgo is looking for a friendly and capable Customer Service & Admin Professional to join our growing team. If you’re the professional we’re looking for you’ll have: Proven experience in a busy office. Great…

Read more

Contact us,
we’ll get you going