Fermoy Forum

It's the time of year where a reward can sometimes make a really big difference to staff and workplace morale.
Reward and recognition are so important for creating a positive company culture. People need to feel appreciated and valued.
Under the Small Business Exemption Scheme - employees can receive a non-cash bonus of up to €500 once a year, the most common way to reward your staff during the year or give a bonus this Christmas.
So long as certain guidelines are followed, neither your company nor your employees will pay PAYE, PRSI, or USC. This can lead to a potential saving of over €600 in tax per employee.&nbsp;&nbsp;
Therefore, for example, savings based on an employer giving an employee €500 net on the higher tax bracket
Net award through payroll
Reward value €500.00
Income Tax @ 40% €416.67
USC @ 8% €83.33
PRSI @ 4% €41.67
Income Taxes €541.67
Taxes paid by employer
Net Reward €500.00
Employer PRSI €111.98
Total Reward cost to employer = €1,153.65
If you haven't taken advantage of the Small Benefit Exemption scheme so far, make sure you do so before 31st December, Tax-free vouchers can only be claimed once a year and can't be carried forward.
There is no paperwork involved and no return to be made to avail of the scheme. Business owners are simply invoiced for the total value of tax-free vouchers ordered. The invoice is treated as a fully deductible business expense for accountancy purposes and there is no need to adjust payroll. For more guidance on Small Benefit Exemption Scheme please click on the below links.&nbsp;&nbsp;
<a href="https://www.revenue.ie/en/employing-people/benefit-in-kind-for-employers/valuation-of-benefits/small-benefit-exemption.aspx" target="_self">https://www.revenue.ie/en/employing-people/benefit-in-kind-for-employers/valuation-of-benefits/small-benefit-exemption.aspx</a>&nbsp;
<a href="https://www.sage.com/en-ie/blog/small-benefit-exemption-scheme/" target="_self">https://www.sage.com/en-ie/blog/small-benefit-exemption-scheme/</a>&nbsp;

Employers! Reward your Staff Gift Vouchers this Christmas

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