Tax Free Employee Bonus

As we near the end of the year, many businesses begin to think of employee bonuses and how best to implement them. For both your businesses and employees sake, it is important to do this as efficiently and effectively as possible and ensure to make the best use possible for your investment.

As you may have heard, over the past number of years, businesses are allowed to give employees a gift, tax free, each year, up to a maximum of €500 per employee per year.

What Does This Mean for Business Owners and Employees?

This gift, which can be only given once during the year, is often used as an end of year or Christmas Bonus. If you give a number of gifts during the year, only the first one qualifies for tax free status, so make sure to think ahead.

The rules by Revenue, state that this gift must not be cash. Vouchers are a very popular form of payment, however these have to be vouchers that can only be redeemed for goods or services and not cash.

This tax exemption insures employees getting great benefit due to the tax free nature of the gift and can be a very welcome tax-free gift at Christmas time.

Small Benefits - Tax Free Gift for Employees

Why Hire an Accountant?

Importance of Professionally Created Accounts for Startups

With most startups, it is vital to keep costs under wraps at all times. This is a good theory to live by, but in your quest to keep costs down, don’t look to false economies to do this.

A problem we encounter fairly often is businesses that spend countless hours each year creating and submitting their own accounts. A professionally prepared set of accounts, can be created quickly, with a minimum input from you and will probably end up saving you money. Most of the time, business owners would be better off spending their limited time doing what they do best and leaving the bookkeeping to the professionals.

 

Reasons to entrust us with your annual accounts include:

  • If you need a mortgage in a few years time, you may need to enlist the help of an accountant anyway, as many banks require at least 3 years audited accounts.
  • If you are audited by Revenue, your own bookkeeping methods may not meet the standards required.
  • Professional Accountants, such as Moloney and McCarthy and Associates, have years of experience of tax law and will make sure you don’t pay any more tax than you are obliged to.
  • Tax laws are changing each year. We keep up to date with these changes, so you don’t have to.
  • This is what we do every day. We know what to look out for and can more than likely do it faster and better than you.

 

If you would like to discuss working with Moloney and McCarthy and Associates about your end of year accounts, just call John or Pat on (068) 22455 for a free, no obligations consultation. We would be delighted to speak with you.