Tax Exemption during COVID-19
Under the small benefit tax-exemption an employer can provide one benefit to an employee each year up to a value of €500. Many people provide Waterford Gift Vouchers as that benefit. During the COVID-19 crisis Revenue are concessionally allowing an employer to give this benefit more than once per year, but within the same overall limit of €500 in a year. If you wish to reward an employee at this exceptional time or wish to pay someone in excess of the income allowed under the Covid 19 income subsidy, you could use one or more Waterford Gift Vouchers. We would encourage you to use those vouchers so that the money is spent locally
Give the gift of choice and shop local
- Waterford Gift Vouchers are accepted in over 180 participating businesses (full list here)
- Vouchers are available in denominations of €10, €25 & €50
- Under the Revenue Commissioners approved ‘Small Benefit Exemption’ scheme, a company can award staff up to €500 as a once-off payment, tax-free
- For further information, please contact Waterford Chamber at 051 872639 or email email@example.com
Where to purchase
- Businesses can order vouchers from Waterford Chamber – call 051 872639, email firstname.lastname@example.org or order online (PLEASE NOTE OUR OFFICES WILL BE CLOSED FROM 23RD DECEMBER TO 4TH JANUARY SO WE WILL NOT BE TAKING ONLINE ORDERS DURING THIS TIME)
- Members of the public can purchase vouchers in Waterford Credit Union (Tramore, Upper Grange & Parnell Street)
Benefits to participating businesses
- Accepting vouchers encourages an uplift in sales
- Attract new customers and grow your customer base
- Your business will be associated with a positive local initiative that promotes the ‘shop local’ message and helps keep money in the local economy
- Your business will be included in the list of participating businesses
- Your business will be announced as a new participant on Waterford Chamber’s social media channels
If your business would like to accept Waterford Gift Vouchers, please complete the agreement form and send by post to Waterford Chamber, 2 George’s Street, Waterford. Alternatively, send a scanned copy by email to email@example.com.
Tax-free bonuses for your employees
Do you pay your employees’ annual bonus through payroll? If the answer is yes, this is treated as taxable income. However, under the Revenue Commissioners’ approved ‘Small Benefit Exemption’ scheme, up to €500 (annually) of this could be paid in vouchers and therefore, be totally exempt from PAYE tax, USC and PRSI.
|Bonus paid through payroll||Bonus paid through Vouchers|
|40% Tax Rate||20% Tax Rate|
|Total cost to employer||€1,096.52||€785.46||€500.00|
|PAYE (40% / 20%)||€396.04||€141.84||–|
|Employee PRSI (4%)||€39.60||€28.37||–|
|Net payment to employee||€500.00||€500.00||€500.00|
Terms & Conditions
- Each voucher is valid for 5 years from the date of issue (Consumer Protection (Gift Vouchers) Act 2019)
- Waterford Chamber, Waterford City & County Council, and Waterford Business Group accept no responsibility for lost, stolen or damaged vouchers.
- Vouchers may not be exchanged for cash.
- Vouchers may be used for purchases at a higher value or payment of the difference.
- Purchases at a lower cost than the value will be dealt with by way of an in-house credit note for the balance.
- Any voucher that has been stolen, misprinted, mutilated or defaced in any manner shall not, at the sole discretion of Waterford Chamber, be refunded.
- Participating businesses reserve the right not to accept any vouchers that appear to have been tampered with in any way.