Employee PRSI on Share Options is now the responsiblity of Employees.
With effect from 1st July 2012 Employees who exercise a Share Option are obliged to return Employee PRSI to the Collector General along with Income Tax and USC, within 30 days. The RTSO1 form (payment of relevant income tax & USC on a share option) has been amended to include Employee PRSI.
Previously the Employer granting the option was responsible for collecting the Employee PRSI through the payroll, provided the Employee remained in their employment. Or if the individual had ceased the employment they were responsible for paying the Employee PRSI directly to the PRSI Special Collections Unit.
HR professionals and those processing Irish Payroll should familiarise themselves with this change and advise employees exercising share options of their obligation to return Employee PRSI.