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Compensation & Benefits

Compensation & Benefits

Our Compensation & Benefits tax team have significant experience working with clients to design suitable remuneration arrangements for employees

Compensation and Benefits tax advice

Designing and administering effective and cost-efficient compensation and benefit plans is complex yet critically vital to a company’s ability to successfully compete and thrive in the global marketplace. Our compensation and benefits professionals can assist you in designing and implementing plans and processes that allow you to manage costs, improve performance, attract and retain employees, and boost your bottom line.

Share based remuneration schemes

Numerous studies have shown that employee ownership of company shares directly correlates to enhanced corporate performance. For this reason, many companies encourage employee ownership of company shares. The tax implications involved in the planning and establishment of a share based remuneration scheme are complex and impact on both the employee and employer.

Company equity can take many forms, including:

  • Approved Profit Sharing Schemes
  • Share Option Schemes
  • Save As You Earn Schemes
  • Restricted Shares
  • Employee Share Ownership Plans
  • Share Clog Schemes
  • Incentive stock options

Our services

Our tax advisers have significant experience of working with organisations to design suitable equity pay arrangements for their employees and directors. Our tax services include:

  • Providing guidance with respect to the tax and other regulatory effects of the equity arrangement
  • Advising on the timing of the share awards or other possible taxable events
  • Advice on designing equity pay arrangements for individual employees and for groups of employees
  • Review of the share scheme rules to determine whether shares can be sold to meet tax costs or if other alternative measures can be taken
  • Review existing payroll systems and procedures to ensure that PAYE, PRSI and USC will be calculated and operated correctly on share awards
  • Analysis on the impact of withholding large amounts of PAYE, PRSI and USC from employees’ salaries and the effect that this may have on the employees net pay
  • A review of existing share schemes and potential alternative schemes to determine which share scheme is best suited to your company’s needs and objectives
  • Advice on the tax treatment of “good leavers” and “bad leavers” from your organisation - in some cases tax obligations can remain with the employers even after employees have left the employment in question

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