Rose Conway-Walsh (Mayo, Sinn Fein) | Oireachtas source

There is no employer PRSI charge for the share based remuneration making share schemes particularly attractive to employers based in Ireland. That is an alternative to cash-based payments of bonuses and awards. The Commission on Taxation and Welfare was of the view that there is an opportunity for greater harmonisation and equity in the treatment of different types of share schemes with other forms of employee remuneration. Unlike most other forms of employee remuneration, share remuneration is not subject to employer PRSI. There is no monetary limit on the employer PRSI exemption for shares and this can represent a significant saving and attractive alternative for employers compared with providing cash-based remuneration. The commission recommended that the exemption from employer PRSI for share-based remuneration should be subject to an appropriate cap per employer, or alternatively that consideration could be given to limiting the relief so that it applies to SMEs only. The Department of Finance informed us that the total cost of this PRSI exemption is estimated at €275 million but it could not break down the cost according to SME and non-SME. Has the Minister or his Department considered this recommendation and if so, to what extent has it been considered?