Insights

Employer Share Scheme Reporting  

There are several year-end reporting obligations for employers who operate share schemes for their employees.

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.

The information is required to be provided on Form RSS1, which must be filed by 31 March each year. The 2018 RSS1 is due to be filed by 31 March 2019.

The Key Employee Engagement Programme (KEEP) introduced on 1 January 2018 provides for share options to employees and directors of certain small and medium enterprises. Similar to the RSS1 form, the 2018 Form KEEP1 must be filed by 31 March 2019. The form reports the grant, release, assignment and exercise of KEEP options by employees and directors.

Form RSS1 and Form KEEP1 must be delivered in an electronic format approved by the Revenue Commissioners and must be filed on the Revenue On-Line Service (“ROS”).

Complexities can arise where share options have been granted to cross-border employees and advice should be sought in this regard.

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.

In respect of Approved Profit Sharing Scheme (APSS), the trust of the scheme must file a Form ESS1 by 31 March following the end of the year in which the shares are allocated, or within 30 days of request by the Revenue.

For Employee Share Ownership Trust (ESOT), the trust must file a Form ESOT1 by 31 March following the end of the year, or within 30 days of request by the Revenue.

Revenue approval of a share scheme may be withdrawn for failure to comply with the reporting obligations above. Trusts must also file a Form 1 as a declaration of trust income and capital gains.

In general, Restricted Stock Units (RSUs) and other share award plans do not have to be reported separately as they are reported through the PAYE system. An employer who facilitated a real time tax credit through payroll for foreign tax paidon RSUs during 2018 must report the details to Revenue by 31 March 2019. 

The Global Employer Services team in Deloitte can assist you with all Revenue reporting obligations for share schemes.

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