A share option is scheme which allows employees to buy shares in the company they are employed with at a favourable price or discount after a specified period. Share Options are taxed at a fixed rate of 15%.
The following permissions are required to complete the actions mentioned in this article.
- Manage Benefits - This permission is required for the access to create/amend/delete benefits on Talexio.
- Manage Payroll - This permission is required for access to Employee Payslips.
- View Salary & Benefits - This permission is required for viewing but not editing Employee Salary & Benefits information
- Manage Employment Position History - This permission allows the user to view and manage all fields in the Employee Position, including salary, benefits and adjustments.
Creating the Share Options Benefit
The Share Options benefit will need to be created on Talexio before it can be added to any Employee's Payslip or Position. To create this benefit, you will need to go to 'Settings' and then to 'Benefits'. From here you will select the '+ Add New Benefit' button, where you will add the details for this benefit and then click 'Save'.
Adding the Share Options...
To an Employee's Position
Once the benefit is created, you can add the Share Options benefit and amount to an Employee's Position. You will need to Edit their Position by going to the tab 'Remuneration Package' and next to the heading Fringe Benefits, select the '+ Add Fringe Benefits' button. Then you will be able to add the relevant date for this Employee's Share Options benefit.
When adding the benefit to an Employee Position, the amount provided is the annual amount this employee is to receive. This annual amount will be proportioned according to the payroll frequency and the start and end date applied to the benefit, if such dates are provided.
Example: An Employee who is set to receive €1200 in a year, and is on a monthly payroll, would see the benefit reflecting in their payslip as €100 and taxed at 15%.
NOTE: Benefits added to an Employee's Position will continually be added to their payslip, until the benefit is removed, or an end date is set.
To an Employee's Payslip
Once the benefit is created, you can add the Share Options benefit and amount to an Employee's Payslip. You will need to locate the Employee's Payslip, and withing the dialog box, select '+ Add Adjustment'. You will be presented with the benefit fields so that you can add the relevant data for this Employee's Share Options benefit.
This will be added manually as a one-time adjustment and will not automatically add itself to the next payroll. Once this benefit has been added, you will see this on the payslip.
For information on the tax paid on the Share Options benefit, click on the tool tip in the payslip.
For information on adding other Fringe Benefits in Talexio, please read our article here.