Want to give your employees a tax free bonus? Here’s an easy way how.
If as an employer, you haven’t given an employee a benefit under €250 during the year, for a Christmas bonus this year you could give the employees a one-for-all voucher up to €250.
Directors who are also registered as employees can also use this method.
This should be the one voucher, in one go.
Be warned if you give a voucher for say €300, then the whole amount is liable to be taxed.
This €250 voucher would be worth the same if you where to give a €475.30 cash bonus after tax!
You don’t have to make a return for this benefit either but remember you are only allowed one qualifying benefit per year per employee.
A tax free bonus works out best for both you and your employee.
|
Cash Bonus of €475.30 |
Gift Voucher Bonus of €250.00 |
| Cost to Employer €475.30 | Cost to Employer €250.00 |
| PAYE €113.01 | PAYE 0 |
| PRSI €72.74 | PRSI 0 |
| USC €39.55 | USC 0 |
| Benefit to Employee €250.00 | Benefit to Employee €250.00 |
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