Employer Share Scheme Reporting
There are several year-end reporting obligations for employers who operate share schemes for their employees.
In respect of share options and other rights granted to directors and employees, employers are obliged to provide information to Revenue in relation to the grant, assignment or release of rights, allotment of shares on the exercise of a right, or the transfer of any asset under rights granted.
This requirement is applicable regardless of whether the share options are in the form of market value options, discounted options or nil cost options. Complexities can arise where share options have been granted to cross-border employees and advice should be sought in this regard.
The information is required to be provided on Form RSS1, which must be filed by 31 March each year. The 2015 RSS1 is due to be filed by 31 March 2016.
The information must be delivered in an electronic format approved by the Revenue Commissioners and must be filed on the Revenue On-Line Service (“ROS”).
The 2015 electronic Form RSS1 is now available on the Revenue website.
In relation to Save As you Earn (“SAYE”) schemes, an employer must file a Form SRSO1 by 31 March of the year following the grant/exercise of the share options, or within 30 days of request by Revenue. Revenue approval of a SAYE plan may be withdrawn for failure to comply with the reporting obligation.
In respect of Approved Profit Sharing Schemes (APSSs), the trust of the scheme must file a Form ESS1 to declare share allocations by 31 March following the end of the year in which the shares are allocated, or within 30 days of request by the Revenue. The trust must also file a Form 1 as a declaration of trust income and capital gains.
Restricted Stock Units (RSUs) and other share award plans do not have to be reported separately as they are reported through the PAYE system.
The Global Employer Services team in Deloitte can assist you with all Revenue reporting obligations for share schemes.