Help me understand payslip entry regarding RSU and Tax?

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Throw_Away

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Can someone help me understand payslip entry regarding RSU and tax? I'm a complete newbie at stocks/shares and this is confusing for me. I'll my best to explain the issue at hand.

I was awarded 240 unit of shares from my employer in 2021 (Stock was supposed to vest in January but the entry didn't appear until April). The Eur value is supposedly worth 7,754.65 Eur (I'm not sure what day the price is worked out from nor the exchange rate).


What I wanted to know is on my payslip, there are two columns, left side being the Payment to me and right side being the Deductions.

On this payslip I have "RSU SHARES PR" with value of 7,754.65 Eur on the left side and on the right side, there is an entry for "RSU SHARES D" worth 3722.23 (Approx. 48% tax).

Does that mean I have already paid the tax for it through the employer's payroll directly? (probably not when looking at the below from what I can see but I'm not sure)

What's confusing for me is that I was expecting only the deduction side only to pay the necessary taxes for the shares.

With the left side value, it would suggest that I got the shares (residing with Fidelity in USA which I still have) and got paid extra 7754.65 which the 3722.23 tax was paid for.

What's even weirder is the income tax amount + PRSI + USC is a lot more, by that I mean if I look at May's payslip and compare, the difference in income tax increase/PSRI/USC comes to 3,098.86 (Most of which is under the Income Tax line item strangely) which when added to 3,722.23 would make up almost the amount of 7,754.65. Seems like the entry is some kind of balancing entry?

I'm hoping someone can tell me what is happening.
 
If you received shares worth c. €7.7k for free then the full amount is considered income and thus assessable for income tax, PRSI, and USC. Sounds like your employer is dealing with this via payroll as opposed to leaving it to you to deal with this (e.g. via an RTSO1 return/payment to Revenue within 30 days). Often the tax/PRSI/USC liabilities are met at the broker end by automatically selling enough vested shares to cover the liability and the broker remits the appropriate amounts to the Irish tax authorities on your behalf. In this case the payroll figures simply reflect this arrangement. Check with your broker account to see if this was the case. If not then you may still have to deal with the liability via your account (by manually selling shares or transferring cash).

You should also ask your employer to explain anything that is confusing to you.
 
ClubMan said:
If you received shares worth c. €7.7k for free then the full amount is considered income and thus assessable for income tax, PRSI, and USC. Sounds like your employer is dealing with this via payroll as opposed to leaving it to you to deal with this (e.g. via an RTSO1 return/payment to Revenue within 30 days). Often the tax/PRSI/USC liabilities are met at the broker end by automatically selling enough vested shares to cover the liability and the broker remits the appropriate amounts to the Irish tax authorities on your behalf. In this case the payroll figures simply reflect this arrangement. Check with your broker account to see if this was the case. If not then you may still have to deal with the liability via your account (by manually selling shares or transferring cash).

You should also ask your employer to explain anything that is confusing to you.
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Clubman is it not mandatory that the RSU tax is dealt with by the employer ? As far as I remember there was a discussion in here a while ago around the fact that an employer is obliged to look after the arising income tax issue for the RSU. What's left to the employee is the CGT tax (above 1270€) that can potentially arise between the vesting date and the selling date.
 
Franc1 said:
Clubman is it not mandatory that the RSU tax is dealt with by the employer ? As far as I remember there was a discussion in here a while ago around the fact that an employer is obliged to look after the arising income tax issue for the RSU. What's left to the employee is the CGT tax (above 1270€) that can potentially arise between the vesting date and the selling date.
Click to expand...

That's correct. PAYE since 1 Jan 2011.
 
Ok, maybe I'm mixing up RTSO1 (for ESPPs only?) with stock/RSU grants. I know that I definitely had to do the RTSO1 return/payment within 30 days myself, but in more recent years my employer dealt with the tax issues via payroll.
 
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