Rewarding staff with the tax-free Small Benefit Exemption

Jan 20, 2021 | Payroll

Provide your employees with a tax-free bonus, of up to €500 in the form of a PREPAID MASTER CARD this Christmas.

  • The PREPAID MASTER CARD can be used toshop online or in store
  • It can be used in32 million locations, everywhere MASTER CARD is accepted
  • Employees will receive the benefittax free. (a €250 reward is equal to €250 available to spend)

Under the Revenue Commissioner’s Approved Small Benefit Exemption Scheme employers can provide employees with a small benefit of up to €500,this small benefit is not subjectto PAYE, USC or PRSI.Only one such benefit can be given to an employee in one tax year. (Finance Bill 2015)

Additional Tax Tip: If a family member is on the payroll, you could choose to pay them an amount up to €500 in the form of a PREPAID MASTER CARD,instead of their salary. This will save them on PAYE, USC and PRSI. It will also save your company up to 10.75% on employers PRSI.

For information on the above, or to purchase cards for your staff, speak to Tom, on 086 0422 104