Query About Bonus

Irishdreamer

Hi,

Just wondering if anyone can help with a Christmas Bonus question. This is our first year giving the staff a bonus for Christmas.

I have looked up various websites about Christmas Bonuses and the small benefits reliefs.

My question is if someone gets a Christmas Bonus of €700 and gets this bonus as a gift card of €500 and the remaining €200 is added to their wages for a week, is only the €200 taxable through our payroll system?

The information seems to vary. For example one website said "If the €500 value is exceed in any year then the total benefit is liable for tax. There is no exemption for the first €500."

Apologies if this seems like a stupid question.

barneystinson

It’s one benefit (not in cash) of up to €500 in a year.

So, you can give a €500 voucher (tax free) plus €200 (taxed).

All the article you quoted was telling you, is that you can’t give a €700 voucher and only tax €200 of it.

Irishdreamer

barneystinson wrote: »

It’s one benefit (not in cash) of up to €500 in a year.

So, you can give a €500 voucher (tax free) plus €200 (taxed).

All the article you quoted was telling you, is that you can’t give a €700 voucher and only tax €200 of it.

Perfect! Thanks!