Hi,
I had share options granted before 2011.
I exercised them this year and was wondering if PRSI is due.
I found the following on the KPMG site -
For options granted on or after 1 January 2011, there is an employee (at 4%) PRSI charge on exercise. This is subject to the rule for 2011 only, that any share based remuneration which is subject of a written agreement between the employer and employee before 1 January 2011 will not be subject to employee PRSI.
This employee PRSI charge does not arise where the option is exercised in 2011 and where the option was granted prior to 1 January 2011.
Yes. Tax point for options is date of exercise. Thus income tax, USC and PRSI applies to taxable portion. You pay within 30 days of exercise using Form RTSO1 and send it to the Collector General.
If share options are capable of being exercised more than 7 years after grant then tax can also arise on grant. Look at the Revenue website if you are in that boat.