Nomansland
Registered User
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- 70
I work for a multinational company that pay out a bonus 3 times yearly. In order to reduce my tax bill, I always convert the bonus recieved into company shares. The scheme is called an "Approved Profit Sharing Scheme" whereby, once the shares are left there for 3 years, you can cash in on them without paying any income tax on the original bonus amount. However I got a bit of a land when I had a look at my first payslip for the year 2011 which contained the payout of one of these bonuses, which I am converting into company shares.
After doing some calculations I have worked out the following
1 - No income tax has been charged on the bonus (as expected)
2 - However when it comes to the calculations of PRSI and the USC's, the revenue seem to have deducted the full 4% PRSI and 7% USC from the bonus. I was surprised at this so I looked into it more. Having examined payslips from Jan 09 and Jan 08 where I recieved bonuses, no PRSI or health levy was deducted from these. So I have the following question,
Was there a change in one of the budgets somewhere that allow the revenue to deduct PRSI and USC from this type of scheme? I have searched the revenue site but I cannot find mention of it.
Regards,
NM
After doing some calculations I have worked out the following
1 - No income tax has been charged on the bonus (as expected)
2 - However when it comes to the calculations of PRSI and the USC's, the revenue seem to have deducted the full 4% PRSI and 7% USC from the bonus. I was surprised at this so I looked into it more. Having examined payslips from Jan 09 and Jan 08 where I recieved bonuses, no PRSI or health levy was deducted from these. So I have the following question,
Was there a change in one of the budgets somewhere that allow the revenue to deduct PRSI and USC from this type of scheme? I have searched the revenue site but I cannot find mention of it.
Regards,
NM