Reward your people: approved profit sharing schemes
What is an approved profit sharing scheme (APSS)?
In a benefits landscape where few tax incentives remain, motivating and rewarding your people has become increasingly challenging. If your company is publicly quoted and you offer employees a bonus scheme, one attractive option is an approved profit sharing scheme. An APSS can help you reward your people while creating tax efficiencies for both you and your employees. In addition is it a great tool to assist in retaining and attracting key talent to your business.
Approved profit share schemes have become hugely popular in Ireland. They benefit employees by allowing them to save income tax at their top rate i.e. 20%/40% on all amounts invested. Employers also benefit by saving 11.05% on employer’s PRSI. This saving can in some cases cover the cost of running the scheme.
How can Mercer help you with your approved profit sharing scheme?
Mercer provides a full APSS service solution that supports you and your employees every step of the way. Our experts can help you develop the business case, design and initiate the scheme, deliver all day-to-day administration services and provide trusteeship services through our sister company Irish Pensions Trust Limited*.
Our skilled and experienced team provides you with services including:
- Share option consulting and advice
- Share option implementation
- Employee communications
- Ongoing administration
- Online enrolment
- Scheme trusteeship
Mercer approved profit sharing schemes solutions
Let us help you to motivate and reward your employees with an APSS!
The main parties to an APSS and their role and responsibilites:
- Implements and sponsors the share scheme
- Appoints the trustee and administrator
- Offers the bonus plan
- Each year chooses how much bonus and salary to invest in shares
- Assumes share ownership risk
- At end of 3 years, chooses to sell or transfer their shares
- Approves the scheme
- Receives monies and purchases shares
- Receives and pays out dividends
- Sells or transfers the shares*
- Performs Irish tax obligations
- Deals with employer and employee queries
- Maintains online platform
- Prepares all legal documentation
- Secures Irish Revenue approval for the scheme
- Assists with communications
- Hold participants’shares in trust for a 3-year period as required by legislation
An approved profit sharing scheme can help you to reward your employees while creating tax efficiencies for you both. It’s also a great way to both motivate and reward your people and can play a key role in attracting and retaining your talented employees.
Share Scheme Consultant at Mercer
Motivate and reward your talented employees
Workforce and careers solutions
-
Benefits benchmarking
Mercer Ireland can help you by benchmarking your benefits and providing advice on plans that are both cost effective and of high value to your employees. -
Executive compensation
Align executive rewards with business objectives to secure the best leadership talent, while ensuring they meet performance goals and government requirements. -
Workforce rewards
Attract, motivate & retain your workforce by rewarding the right behaviours. Mercer can help with benchmarking, total rewards strategy, career frameworks and more.