Payments to employees

Benefit in Kind (BIK)

Notional pay

Notional pay on a benefit, for example a company car or medical insurance, should be reported on or before making a notional payment.

Where the actual value is not available, the employer must submit a best estimate of any benefit in the relevant payroll submission. When the actual value of the benefit becomes available, the employer should include any adjustment in the next payroll submission.

The employer should review notional pay regularly (at least quarterly) to ensure payments reported to Revenue are as accurate as possible.

Share based remuneration

The employer should, in the absence of a precise valuation, include a best estimate of the value of the benefit involved arising on share based remuneration. That amount should be reported as notional pay in the relevant payroll submission to Revenue.

When the precise value of share based remuneration becomes available, any adjustment should be included in the next payroll submission.

Shares might vest on 31 December. An employer should consider whether the shares have vested by close of business in Ireland on 31 December.

Expenses

The employer must make a payroll submission on or before any payment is made to an employee. This includes reimbursement of taxable expenses to an employee. Where taxable expenses are reimbursed, the employer must file a separate payroll submission on or before the payment of the reimbursement.

Expenses might be paid through a company credit card. Revenue will accept that, for the purposes of PAYE, the payment can be regarded as notional pay. 

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