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
Bullet One4all logo tax free bonus

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