Service and performance schemes and awards
Staff suggestion schemes
You may make an award to your employee under a staff suggestion scheme. This award is a benefit in kind and they must pay Pay As You Earn (PAYE), Pay Related social Insurance (PRSI) and Universal Social Charge (USC) on it.
Long service awards
You may make a long service award to your employee. This award is not a benefit in kind, if it meets all of these conditions:
- the award is made to mark long service of not less than 20 years
- the award is a tangible item (that is, not vouchers, bonds or cash)
- the cost is not more than €50 for each year of service
- no similar award has been made to the employee within the previous five years.
If these conditions are not met employees must pay PAYE, PRSI and USC on the value of the award.
Exceptional performance awards
You may make an award to an employee for exceptional performance. This award is a benefit in kind and they must pay PAYE, PRSI and USC on it.
If you wish to make a tax free award, the value of the award must be grossed up. See Taxation of benefits for information on grossing up.