Service and performance schemes and awards
Staff suggestion schemes
An employer may decide to run a staff suggestion scheme. Any awards an employer gives to employees under the scheme are generally taxable benefits in kind. The employee is chargeable on the benefit under the Pay As You Earn (PAYE) system to:
However, an employer can give the award tax free if it meets the conditions of the Small Benefit Exemption.
Long service awards
An employer may decide to make a long service award to their employee. This award is not a taxable benefit in kind, where all of these conditions are met:
- the award is made to mark long service of 20 years or more
- the award is a tangible item (that is, not vouchers, bonds or cash)
- the award cost is €50 or less for each year of service
- and
- no similar award has been given to the employee within the last five years.
If these conditions are not met, the employee is chargeable on the benefit under the Pay As You Earn (PAYE) system to:
However, an employer can give the award tax free if it meets the conditions of the Small Benefit Exemption.
Examination awards
An employer may give an examination award to their employee. This award is generally a taxable benefit in kind. The employee is chargeable on the benefit under the Pay As You Earn (PAYE) system to:
However, an employer can give the award tax free if it meets the conditions of the Small Benefit Exemption.
Moreover, an employer can provide a tax-free award if this award is a repayment of allowable examination or course expenses. Please see Examinations, courses and professional subscriptions for more information.
Exceptional performance awards
An employer may pay an exceptional performance award to their employee. This award is generally a taxable benefit in kind. The employee is chargeable on the benefit under the Pay As You Earn (PAYE) system to:
However, an employer can give the award tax free if it meets the conditions of the Small Benefit Exemption.