It is possible for companies to extend the Scheme throughout the year in conjunction with a qualifying points system. This means that you can award points to your employees throughout the year, and allow them to cash-in their points at the end of the year up to maximum of €500 in non-cash rewards.
As well as enjoying the same tax-free status, ongoing Small Benefit programmes can have the advantage of being more engaging and impactful than a single reward. The advantage of course is that instead of a giving a one-off reward for retrospective performance, you can instead run an ongoing proactive incentive & reward programme throughout the year. This could be a Sales Incentive, Performance Improvement Programme, KPI Rewards, Safety-at-Work Programme, Wellness Programme, Referral Programme, Recognition Programme, Peer-2-Peer Programme - to name but a few.
"You can award points to your employees throughout the year, and allow them to cash-in their points at the end of the year."
Allgo’s Reward Hub platform allows companies to run ongoing employee reward programmes, and is fully approved by Revenue for the Small Benefit Scheme. The typical ongoing programme works like this-
- Companies award points every month to their Irish staff using Allgo’s Reward Hub (normally for a defined set of criteria).
- Employees build up their points all year, but cannot spend their points until with 1st December or 1st January (depending on what suits the company best).
- Once the date for spending is reached, employees can log on the incentive website and redeem their points for retail gift cards or vouchers.
- The programme either caps the value of the points earned by each employee at €500, or restricts their spending to €500, with the balance being paid through payroll, subject to the normal tax rate.
Download the Small Benefit Guide 2018
In the latest publication from Allgo, we provide the definitive guide to the Irish Revenue's tax-free reward scheme for Irish employers and employees. Download it for free today by clicking the Download Now button below.