Under the Government's Small Benefits tax exemption policy, employers can reward their staff up to two small benefits, tax-free, each year. These benefits mustn't be in cash and the combined value of the two benefits can't exceed €1000.

Vouchers up to €1000 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 Payroll to the One4all shopping basket.

From €0 and €150

Since September 2023 any requests for One4all vouchers between 0 and 150, you must submit outside of Sage Payroll.

From €150 and €1000

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

   TIP: You don't have an account, click Create an Account and 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 are correct.
7. Complete your purchase.

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

From €1001 and €5000

There may be a tax liability to record if an employee gets a One4all gift card greater than €1000. For example, if an employee gets a One4All gift card for €1500:

• €1000 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 though 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. Read more on How to record a small benefit exemption.