Company shares
You may give company shares to an employee which are either:
There are different rules for shares and share options. Direct share awards are a benefit-in-kind (BIK). These shares are chargeable under the Pay As You Earn (PAYE) system to:
Employer PRSI does not apply to share-based remuneration if the shares are in the employer company or a company that controls that company. The employer's PRSI exemption does not apply to cash-settled awards or any cash payment that follows the value of the shares.
You must include the cash value of these share awards when completing your payroll submission for the period in which they are awarded.
Revenue approved schemes such as Approved-Profit Sharing Schemes (APSSs), Employee Share Ownership Trusts (ESOTs) and Save as You Earn (SAYE) schemes give certain Income Tax exemptions.
You can find more information in Shares for employees.
Value of the benefit
The value of the benefit is:
- the market value of the shares at the date you award them
- or
- the value of the discount. (The difference between the market value of the shares when they are purchased and the amount paid).