What is Share-Based Remuneration / Benefit-in-Kind for Shares

• It refers to when an employer gives an employee shares in the company (or an equivalent), either for free, at a discount, or under an option scheme.  Click for more information here.
• The “net value” of those shares is treated as notional pay at the time the shares are awarded. That means it’s considered part of the employee’s income (even though they haven’t been paid in cash) for tax, USC (Universal Social Charge), and employee PRSI (Pay Related Social Insurance) purposes.
• Employer PRSI: Generally not charged if the shares are in the employer company (or a company that controls the employer) and the benefit is share-based rather than cash-settled. Click for more information here.
• If the scheme is Revenue-approved (e.g. APSS, ESOT, KEEP, SAYE), there may be favourable tax treatment or exemptions, provided specific conditions are met – for further clarification we would advise that you contact Revenue directly.

Processing Benefit in Kind on Share Based Remuneration in BrightPay

To access this utility go to Employees, select the employee in question from the listing and click 'Expenses & Benefits' on the menu toolbar, followed by 'Add' > choose 'Share Based Remuneration'

1) Description - enter a description of the shares being provided.

2) Amount – enter the applicable value of the shares being provided.

3) Date - enter the date that the shares are given to the employee.

4) Employee contribution - enter any amount made good by the employee directly to the employer towards the cost of providing the benefit.

5) Click Save to save the Benefit In Kind entry.

The 'Notional Pay' will be added to the employee's gross income in the relevant pay period to ensure that the correct PAYE, Universal Social Charge and PRSI are charged.