As we approach the year-end and embrace the winter season, taking time to enhance your employee engagement strategy is important.
Did you know, as a business owner, that you can now gift an employee up to €1,000 tax-free?
Your team has consistently gone the extra mile throughout the year.
Demonstrating your appreciation through rewards and recognition plays a pivotal role in maintaining their job satisfaction, motivation, and productivity in the ever-changing landscape of business ownership.
“A significant development for business owners came into effect at the end of last year through benefit-in-kind (BIK), which might just be the answer to bolstering employee morale and loyalty,” said Nicola Roche, senior sales development representative at One4all Rewards.
“You can now gift an employee up to €1,000 tax-free, thanks to the increase in the BIK limit to €1,000.
This change allows businesses to reward their employees with up to €1,000 per annum in One4all Gift Cards, exempt from tax, PRSI, and USC charges, potentially saving up to €1,313.54* per employee.
The maximum reward of €1,000 can be split across two payments in one financial year.
“Investing in your employees not only acknowledges their dedication but also fosters a sense of belonging within your organisation. It enhances employee loyalty, which, in turn, can have a positive impact on retention rates, ultimately saving you money and effort in recruitment and training, she added.
“Appreciating and acknowledging your staff isn’t just a nice gesture; it’s fundamental. In the dynamic world of business, nurturing a motivated and engaged workforce is key. Take a moment to celebrate your employees, as they are the heart of your accomplishments.”
The popular One4all Gift Card can be loaded from €15 to €150, and its digital counterpart can be tailored with a personalised video message from you on behalf of your business, or customised with a photo of your company logo, which can be easily sent by text or email.
For higher value loads over €150, the One4all Chip & PIN Gift Card option is available in physical or digital reloadable format.
EU Directives to protect Irish consumers means that anonymous gift cards with a load value of over €150 currently require a simple photo verification process to help protect Irish consumers against online fraud.
Employees who received a Chip & PIN Gift Card last year benefit from previous photo verification, meaning the ID process is still valid for a period of up to four years from initial verification.
“The recent increase in the BIK limit is a game-changer for business owners seeking to boost employee morale and reduce costs simultaneously,” said Roche.
“As we approach year-end, seize this opportunity to show your employees that their hard work has not gone unnoticed, and watch as your workforce continues to go above and beyond to achieve your business objectives in the years to come. It's an investment that pays dividends in the form of a happier, more engaged, and motivated team.”
*The figure of €1,313.54 is based on giving €1,000 net to an employee on the 40% tax band paying full PRSI and USC. The maximum reward of €1,000 can be split across two payments in one financial year.