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PAYE Settlement Agreement

  • 16-12-2020 5:49pm
    #1
    sunshine99
    Registered Users Posts: 2 ✭


    Is there anyone here that is familiar with PAYE settlement agreement and is it still valid since payroll modernisation has been established?
    Employees are getting paid a voucher of 50 extra on top of their 500 voucher so there is a tax element on the 2nd voucher which the employer want to pay the cost off.
    I have rang the revenue and put enquiry on myenquires and i haven't heard anything back yet.


Comments

  • #2
    capefear
    Registered Users, Registered Users 2 Posts: 782 ✭✭✭capefear


    If you pay them more than 500 is the lot not taxable, see below from revenue site


    Small Benefit Exemption
    You can give employees a small benefit of up to €500 in value, tax free, each year. This benefit must not be in cash.

    If more than one benefit is given in a year, only the first one qualifies for tax free status. Unused allowance amounts cannot be carried over.

    Tax-free vouchers or benefits can be used only to purchase goods or services. They cannot be redeemed for cash.

    Note

    If a benefit exceeds €500 in value, the full value of that benefit is subject to tax.


  • #3
    Vestiapx
    Registered Users, Registered Users 2 Posts: 1,193 ✭✭✭Vestiapx


    sunshine99 wrote: »
    Is there anyone here that is familiar with PAYE settlement agreement and is it still valid since payroll modernisation has been established?
    Employees are getting paid a voucher of 50 extra on top of their 500 voucher so there is a tax element on the 2nd voucher which the employer want to pay the cost off.
    I have rang the revenue and put enquiry on myenquires and i haven't heard anything back yet.

    This is one of those 1980s tax issues where more is less.


  • #4
    pnecilcaser
    Registered Users Posts: 95 ✭✭pnecilcaser


    can an employee receive a gift of 250 from one employer and 250 from another employer?


  • #5
    Lenar3556
    Registered Users, Registered Users 2 Posts: 1,580 ✭✭✭Lenar3556


    pnecilcaser wrote: »
    can an employee receive a gift of 250 from one employer and 250 from another employer?

    They can receive up to €500 (voucher, non cash) from each employer.

    In the OP’s example, you don’t want to exceed the €500 limit, so the €50 should be treated separately and put through on payroll, grossed up by the employer to whatever will cover the tax to be paid - if it’s possible to isolate it in the particular circumstances.


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