531AO Deduction and payment of universal social charge on relevant emoluments

Summary

This section puts the primary responsibility for the payment of USC in respect of “relevant emoluments” on an employer. The repealed subsections (2) to (12) contained provisions relating to the deduction and remittance of USC and the provision of documentation to Revenue. These are now contained in The Universal Social Charge Regulations 2018.

The section also relates to situations where an employer grants shares to employees, or employees exercise options to acquire shares under a Revenue approved savings-related share option (SAYE) scheme, as part of their remuneration package. Where there is no means to pay whatever USC is due on the value of the shares, the employer is entitled to withhold sufficient shares to fund payment of the USC liability.

Details

(1) This section puts the primary responsibility for the payment of USC in respect of “relevant emoluments” on an employer.

(1A) Where an employer makes notional payments to an employee in the form of shares, or an employee realises a gain by exercising an option under a Revenue approved savings-related share option (SAYE) scheme, he or she is obliged to account for USC on the value of those shares or the amount of the gain. An employer is entitled to withhold sufficient shares to fund that USC liability if the employee does not otherwise provide the employer with sufficient means to do so (subsection (1C)).

(1B) The employee must allow the employer to withhold sufficient shares to fund the USC liability. Even though the employee has not actually received the shares, he or she is to be treated as if the value of the shares had been paid by the employer.

(1C) An employer is only entitled to withhold shares where the employee does not otherwise provide the employer with sufficient means to fund the USC liability.

Relevant Date: Finance Act 2021