If a non-cash benefit exceeds the threshold allowance then the full face value of the benefit is subject to PAYE, USC and PRSI. For example, you cannot take a voucher of €300 earlier in the year and take a further €200 later in the year. Only one such benefit can be given to an employee in one tax year, even if you do not take the full €500.The director or employee cannot purchase a voucher themselves and seek reimbursement from the company. company bank account or company credit card. The gift voucher must be purchased by the employer from the company funds e.g.The gift card allows employees to receive a bonus or non-cash gift without paying PAYE, PRSI or USC on the amount (not exceeding a one time benefit of €500).The benefit cannot be cash, any cash payments or cash benefits are fully taxable.There are specific conditions to qualify for the non-cash or gift card payment which are: Thesaurus Payroll Manager will track employer usage, per employee to ensure employers keep within revenue guidelines for the small benefits exemption scheme. If there is a benefit programme in place on an ongoing basis (for example €50 voucher four times a year) then the first voucher may be ignored and all the subsequent vouchers must be also taken into account as notional pay. Employees and employers can benefit from the small benefits relief which applies to a one-off benefit in any one year. The small benefits relief is the amount that falls under a yearly small benefit relief and must not exceed €500 in any given year. The payment must be in a non-cash format with the most common method of paying this benefit in a gift card format. Under the small benefits scheme, both company directors and employees can receive a gift card completely tax free each year. In 2015, the Irish government announced in the budget that employers could give a gift card of up to €500 tax free to employees. Thesaurus Payroll Manager now offers a facility where users can securely purchase gift cards for their employees. Please make sure you are using the latest version of Thesaurus Payroll Manager when purchasing One4all gift cards. Manually Calculating PAYE Modernisation.Client Payroll Entry & Payroll Approval.
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