You may give company shares to an employee, which are either:
- free of charge
- at a discounted price
- under a share award or share option scheme.
These shares are a benefit in kind (BIK). The value of the benefit is the market value of the shares at the date you award them. Most employment-related shares are chargeable under the Pay As You Earn (PAYE) system to:
The exceptions to this are share options and shares under Revenue-approved share schemes.
You must include the cash value of the shares when completing the monthly P30 and the annual P35 or P35L.
You do not deduct Income Tax, USC or PRSI through payroll on share options. You must however make a return of the grant, exercise, assignment or release of an option on Form RSS1.
Your employee’s obligations are outlined in the Employment-related shares section.