Tax Free Gift Cards for Employees

Under the Government’s Small Benefits tax exemption policy, businesses can reward their staff up to €500 once per year completely free of tax, PRSI and USC. With One4all Rewards, you can offer your staff tax free gifts on an ongoing or annual basis, saving up to €653.65 per employee. Rewarding your staff with One4all Gift Cards is simple, convenient and cost-efficient – read on to find out how this exemption works, calculate your tax savings and more.

How the small benefit exemption works

Though it is easy to take advantage of the Small Benefits exemption to reward your staff, please bear the following in mind:

The exemption can only be used once per year, and cannot be stacked. For example, if you give a €350 gift card in the middle of the year, this will qualify for the Small Benefits exemption. However, if you subsequently give a gift card worth €150 later in the same year, this will not qualify and you will need to pay tax, USC and PRSI on the gift.

Which types of gifts qualify for tax exemption?

Any non-cash gift up to the value of €500 qualifies for the Small Benefits exemption, including hampers, homeware, gadgets, theatre tickets etc.

One4all research has found that a gift that is meaningful to the employee is 2.5 times more important than the cash value of that gift. By rewarding your staff with One4all Gift Cards you can give your employees the opportunity to choose a gift that they will remember, making it all the more valuable as a staff reward.

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Small Benefits Exemption – the figures

The example below outlines the difference between a net €500 gift given to an employee through payroll and through One4all Gift Cards. The total cost of a net €500 gift paid through payroll is €1,153.65, meaning that businesses can save up to €653.65 per employee when they use One4all Gift Cards as an annual gift.

Tax Savings Calculator

Tax savings for businesses that reward their staff with One4all Gift Cards will vary depending on the Tax Band your employees fall under, however you can use the table below to estimate the tax saving for your business:

Employees 20 50 100 300 500
Savings €13,073 €32,683 €65,365 €196,095 €326,823

Tax-Free One4all Gift Cards

One4all Gift Cards are accepted in over 11,000 outlets nationwide and online, including top retailers such as Argos, TK Maxx, Boots, Penneys, SuperValu (selected outlets), H&M and many more. Whatever your staff want, they’ll find a gift they love with One4all. One4all Gift Cards can be purchased online or through our friendly corporate sales team – get in touch to reward your staff with a tax free gift today.

Please note, it is not possible to return a One4all Gift Card bought under the Small Benefit Exemption in exchange for a cash sum, as your employer may become liable to pay tax on the gift.

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