Small benefit boost a big win for workers
by Niall Shanahan
 
ICTU’s head of social policy and employment affairs, Laura Bambrick, welcomed that the small benefit exemption will be a ‘reportable benefit’, meaning that employers would be responsible for reporting the payment to Revenue.
ICTU’s head of social policy and employment affairs, Laura Bambrick, welcomed that the small benefit exemption will be a ‘reportable benefit’, meaning that employers would be responsible for reporting the payment to Revenue.

Among the income measures introduced in last month’s Budget was a resolution to the Taxes Consolidation Act (1997), increasing the amount an employer can provide to an employee with a small non-cash benefit, such as a voucher.

 

The resolution increases the limit of the small benefit exemption from €500 to €1,000, which was one of the recommendations in ICTU’s pre-Budget submission this year.

 

The resolution increases the number of benefits in a year that an employer can give from one to two per year, at a maximum total of €1,000 in a single year.

 

Fórsa national secretary Katie Morgan explained that the move marked a successful outcome for ICTU’s pre-Budget campaign, and reflected the Government’s decision, earlier this year, to provide a tax-free payment of €1,000 to public servants involved in the response to the pandemic.

 

Katie added: “The boost in the exemption limit represents a real win for workers. The non-cash payment is exempt from PAYE, USC and PRSI, and will benefit tens of thousands of workers.

 

“We are already seeing the revised exemption limit at work in many of our non-state employments, including Irish Water and the recent addendum agreement approved by Aer Lingus cabin crew and pilots, which included a special once-off payment.

 

“ICTU’s recommendation to the Government was that it raise the Small Benefit Exemption limit from €500 to €1,000. By raising the limit the measure allows employers greater scope to grant employees non-cash awards tax-free.

 

“As the cost-of-living crisis continues to bite, this measure should benefit working families. Even if an employer has already given the benefit of €500 this year, that employer can give a further voucher for up to another €500 this year as a tax-free bonus, now that the limit has been raised” she said.

 

ICTU’s head of social policy and employment affairs, Laura Bambrick, welcomed that the small benefit exemption will be a ‘reportable benefit’, meaning that employers would be responsible for reporting the payment to Revenue: “We’ll finally know how widespread, or not, payments of these worker benefits is,” she said.

 

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