You can give your staff a small non-cash benefit i.e. gift voucher without them having to pay PAYE, USC and PRSI. Such a benefit must have a value of €500 or under.
This treatment does not apply to cash payments, which are taxable in full.
You can only avail of this relief once in a tax year i.e. if you give a staff member two separate gift vouchers worth €250 in the year then the second one is liable to tax even though the full amount is under the threshold.
If the benefit is more than €500 in value the full value of the benefit is subject to PAYE, USC and PRSI.
Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.