Ireland: No Employer-side PRSI for Stock Option Exercise

Under a Commencement Order in the Social Welfare and Pensions Act 2012 signed on June 28, employers who grant stock options to employees in Ireland are no longer required to deduct and remit employee-side Pay Related Social Insurance (PRSI) to the Revenue Commission on the spread of stock options exercised on or after July 1, 2012. 

This sum (which is usually 4%) will be paid directly by the employee, along with his/her income tax and the Universal Social Charges under the RTSO (Relevant Tax on Share Options scheme).

This change means that a joint-election waiver is no longer necessary. For more information, visit the PRSI site forinformation on share-based compensation obligations.