PAYE WORKERS WILL be able to receive tax-free bonuses of up to €1,000, it was confirmed in the Budget this afternoon.
The previous amount workers could claim tax-free was €500.
This benefit must not be in cash but can be in the form of vouchers or cards that can be used to purchase goods or services.
During his speech to the Dáil, Paschal Donohoe said: “The Small Benefit Exemption allows an employer to provide limited non-cash benefits or rewards to their workers without the payment of income tax, PRSI and USC.
“I am increasing the annual limit provided for in the exemption from €500 to €1,000 and will also permit two vouchers to be granted by an employer in a single year under this exemption.
“I propose that these changes will apply in the current tax year, so that additional benefits can be paid this year if an employer wishes to do so.”
Speaking after the Budget speech. Tánaiste Leo Varadkar said that the point of extending the bonus was to put more cash in the pockets of middle-earners. However, he said he does not envision that the rate will be extended futher into the future.
To embed this post, copy the code below on your site
have your say