Jul 2013
27
PAYROLL TAX TIP - JULY 2013
EMPLOYERS DID YOU KNOW YOU CAN PROVIDE YOUR EMPLOYEES WITH A SMALL BENEFIT TAX FREE?
Revenue Commissioner’s Approved Small Benefit Exemption Scheme:
Employers can provide employees with a small benefit (that is a benefit not exceeding €250); this small benefit is not subject to PAYE, USC or PRSI.
The following rules apply:
- The benefit cannot be cash, cash payments are fully taxable
- Only one such benefit can be given to an employee in one tax year
- Where a benefit exceeds €250 the full value of the benefit is subject to PAYE, USC & PRSI
The small benefit is traditionally given as a voucher, as mentioned above only one such benefit can be given to an employee in one tax year. If for example an employee receives a €150 voucher in January and a €100 voucher in June only the €150 January voucher will qualify for exemption and the €100 voucher given in June will be subject to PAYE, USC & PRSI.
Where a benefit exceeds the value of €250 the full value is subject to PAYE, USC & PRSI. For example if a €260 voucher is given to an employee the full value should be included on payroll as a benefit in kind and therefore subjected to PAYE, USC & PRSI.
Any changes to the scheme will be included in the help file within Thesaurus Payroll Manager and also on the online BrightPay help file http://www.brightpay.ie/docs/2013/benefit-in-kind/one-off-benefits/
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
