Do you want to give your employees a tax free bonus?
Employers can give employees a small benefit of up to €500 in value, tax free, each year. This benefit must not be in cash.
If more than one benefit is given in a year, only the first one qualifies for tax free status. Unused allowance amounts cannot be carried over. If a benefit exceeds €500 in value, the full value of that benefit is subject to tax.
Tax-free vouchers or benefits can be used only to purchase goods or services. They cannot be redeemed for cash.
As the vouchers are free off tax, PRSI & USC there is no need to process them through payroll.