When it comes to rewarding employees, most companies instinctively opt for cash bonuses. It feels simple, familiar, and universally appreciated.
But there’s a catch: cash bonuses are heavily taxed, often leaving employees with far less than you intended, while driving up your company’s payroll costs.
Thankfully, there’s a smarter, tax-free alternative available to Irish employers: The Small Benefit Exemption (SBE). This Revenue approved scheme allows you to provide employees with gift cards worth up to €1,500 per year, completely tax-free.
Let’s look at why this approach delivers more value for your employees and your business.
The Numbers Don’t Lie
Here’s a simple example: You want to reward an employee with a €1,500 bonus.
| Reward Type | Cash Bonus (Taxed) | Swirl Gift Card (Tax-Free) |
|---|---|---|
|
Gross Bonus |
€1,500 |
€1,500 |
|
Income Tax, USC, PRSI |
~€780 (approx. 52%) |
€0 |
|
Net to Employee |
€720 |
€1,500 |
|
Employer PRSI |
€155+ |
€0 |
|
Total Cost to Company |
€1,655+ |
€1,500 |
Result:
The employee takes home more than double with the gift card, and the company spends less while maximising the value of the reward.
Calculate your potential tax savings with our Small Benefit Calculator
Gift Cards Offer Real Flexibilty
Some employers worry that gift cards are less flexible than cash but that’s no longer true.
With Swirl Gift Cards:
- Employees can spend anywhere Mastercard is accepted. From supermarkets to online retailers the choice is theirs.
- Rewards feel like real spending power, not restricted to vouchers.
- You deliver a memorable, appreciated benefit without any tax implications.
Gift cards are not a compromise; they’re a smarter way to reward.
Smart for Employees. Smarter for Employers.
The Small Benefit Exemption is not a loophole; it’s a Revenue backed initiative designed to:
- Increase employee satisfaction and loyalty
- Lower payroll costs for the company
- Encourage smart, tax-efficient rewards
Yet only around 50% of Irish employers take advantage of it. The other half are paying more to give less, missing an easy opportunity to maximise employee rewards.
Why Swirl Makes It Effortless
Implementing tax-free rewards is simple with Swirl:
✅ Simple ordering and fast dispatch of gift cards
✅ Revenue compliant tracking and reporting
✅ Scalable for teams of 50 or 5,000 employees
✅ No hidden costs or manual administration
With Swirl, you boost engagement, save on payroll, and stay compliant, all without changing your global processes.
Reward Smarter. Spend Smarter.
Cash bonuses may feel easy, but tax-free gift cards give your team more and cost your business less.
➡ Contact Swirl today to start rewarding employees the smart, tax-free way.
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