Employment Taxes

Employing staff is a very expensive business. Apart from the obvious remuneration paid by the employer there are also the taxes the employee has to pay (which the employer collects if in the PAYE system) and the taxes the employer is liable for. Beyond the payment of basic salary there is a broad spectrum of incentives employers often use to encourage and reward their employees however, if the tax implications are not adequately investigated these incentives may not generate the desired rewards for the employee and, by extension, the employer.



We work with our clients to design incentive packages to attract or retain key employees, without triggering large tax liabilities for either side. We can implement employee incentive schemes for companies which need talented individuals and want to incentivise them in line with the company’s growth plans, while also incentivising senior management figures. These schemes can also be extended to the entire workforce beyond the management tier, to drive productivity and profitability.


Share schemes and share option schemes can be used as tax-efficient incentives for staff to achieve targets. Such schemes are a beneficial method of sharing the business’s success with employees so they feel their contribution is valued. They feel they have a stake in the business when its growth directly reaps rewards for them.  We advise our clients on the various schemes available and assist them to choose the most appropriate one.  We can also implement the scheme and support its administration.

Beyond the employee incentive schemes we also work with our clients:

►   Ensuring the business is PAYE/PRSI, RCT and PSWT compliant

►   Reviewing PRSI class applicable to director’s remuneration and seeking rulings if the contribution class is in doubt

►   Advising on the PAYE/PRSI treatment of benefits-in-kind (BIKs)

►   Advising on the treatment of expenses including petty cash, expense claims, company credit card claims

►   Reviewing employment contracts from a tax perspective and considering the tax status of benefits

►   Reviewing the application of PAYE/PRSI to non-cash remuneration

►   Determining whether an individual is employed or self-employed

►   Ensuring the appropriate tax treatment of contractors/consultants

►   Advising in relation to the PAYE/PRSI treatment applicable to resident and non-resident temporary assignees, including relocation and related payments

We also provide specific advisory services dealing with

►   Pension schemes

►   Termination payments

►   Payroll taxes