The small benefit exemption must be in non-cash form, such as a voucher or a hamper. PAYE, PRSI and Income Levy will not be applied to the benefit. The small benefit exemption cannot be paid in the form of cash, cheques etc. The exemption does not apply to the cumulative value of a number of gifts but rather it applies to a single gift. The employer saves as they do not have to pay Employers PRSI on the benefit and they also receive a deduction for the small benefit expense e.g. the cost of gift voucher, for corporation tax purposes. So treat your employees this Christmas tax free.