Message to employers considering giving a bonus this year

Chamber vouchersEmployers, employees and local jobs all benefit when bonuses of up to €250 are paid using Mullingar Chamber Shopping Vouchers rather than through regular salaries. Employees are rewarded with something they actually want, and have the benefit of choosing where to spend at any of our many participating retailers. They can use immediately, or alternatively keep for that special occasion as opposed to a cash bonus that is so often just absorbed into their pay cheque quickly disappearing without them realising they’ve even had a bonus. The company not only reaps the rewards of increased morale, productivity and loyalty, but due to the tax advantages available by using the vouchers both parties also benefit significantly from the savings.

Benefits

  •  Tax efficient, first €250 paid to an employee is tax free (See example below)
  •  Convenient to purchase, either drop into the Chamber offices or send us in a cheque and on clearance we’ll have them delivered to you
  •  Can be ordered in bulk
  •  Handy denominations of €10, €20 or €50 euro
  •  Many local retailers offer discount used in conjunction with the voucher.
  •  Allows the employee the decision on where to spend the voucher
  •  KEEPS TRADE LOCAL!!!!!

So if you want to keep everyone happy this just might be the key to a cost saving Christmas

Example of Bonus of €250.00 paid through payroll

Net Bonus €250.00
Income Tax @ 41% €213.54
PRSI @ 4% €20.83
USC @ 7% €36.46
Employers PRSI @ 10.75% €55.99
Total Cost to employer €577
Taxes paid €327
Net benefit to employee €250

Bonus of €250.00 paid by Voucher

Cash per employee €250.00
PAYE (at higher rate) NIL
PRSI (employees) NIL
TOTAL €250.00
PRSI (employers) NIL
Total Cost to employer €250.00
Net Benefit to employee €250.00

Lower rate of tax @ 20% would reduce cost to employer through payroll by ~ €105

Find out more about our Mullingar Chamber Vouchers and where you can buy and spend them »

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