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|