Under the Government's Small Benefits tax exemption policy, employers can reward their staff up to five small benefits, tax-free, each year. These benefits mustn't be in cash and the combined value of the five benefits can't exceed €1,500.

 NOTE: Prior to January 2025, employers could reward their staff up to two small benefits, tax-free, each year. These benefits couldn't be in cash and the combined value of the two benefits couldn't exceed €1000. 

Vouchers up to €1,500 are free of tax, PRSI and USC, so there's no need to process these through your payroll. However, you can use the Gift Cards option to purchase One4all gift cards for your employees. This means you don't need to manually enter your employee names and amounts. These go directly from Sage 50 Payroll Ireland to the One4all shopping basket.

From €0 and €150

Since September 2023, any requests for One4all vouchers between zero and 150, you must submit outside of Sage 50 Payroll Ireland.

From €150 and €1500

1. Select Gift Cards, then One4all.
2. Ensure all Employer Contact Information is correct.
3. In the Gift Card Value (€) field, enter a value between 150 and 5000 for each employee you need to receive a gift card.
4. Select Purchase on One4all website.
   The One4all login page appears.
5. Log in to One4all.  
   

   TIP: If you don't have an account, select Create an Account, then follow the on-screen steps. If you have any queries, contact One4all for further information.

6. Once logged in, confirm the contents of your basket and amounts.
7. Complete your purchase.

To view a log of gift card amounts sent to One4all from Sage 50 Payroll Ireland, select View log in the gift card window.

From €1501 and €5000

There may be a tax liability to record if an employee gets a One4all gift card greater than €1500. For example, if an employee gets a One4All gift card for €2000:

• €1500 is a Small Benefit and is exempt from Tax, PRSI and USC. You don't need to put this through payroll
• The remaining €500 needs to go through payroll as a BIK for taxation purposes. Set up a benefit in kind (BIK) payment and assign it to an employee

Enhanced reporting requirements (ERR)

To show the voucher on the ERR grid, you need to process it through payroll. However, you don't want to pay the employee the value of the expense; otherwise, they get both the voucher and cash value. You therefore also need to set up a Nett deduction.

This means the employee appears on the expense grid. You can then enter the breakdown without paying them the value of the expense as cash. How to record a small benefit exemption.