Under Section 6039 of the Internal Revenue Code, employers must file returns with the IRS for employees who have exercised incentive stock options during the year or transferred shares acquired pursuant to Section 423 qualified employee stock purchase plans. This article provides an in-depth summary of the mechanics of preparing the filings on Form 3921 (ISOs) and Form 3922 (ESPPs) that are necessary to fulfill this requirement.
Current US tax withholding rates and maximums for supplemental payments made in 2021.
A series of tables indicating where income attributable to various stock plan transactions is reported on Form W-2 and Form 1099-MISC.
Changes to US tax withholding rates and compensation thresholds for various tax-related purposes for 2021.
A procedural update to the Internal Revenue Manual clarifies instructions relating to the application of late-deposit penalties to tax withholding for NQSOs and extends existing penalty relief to restricted stock units and stock-settled SARs.
IRS GLAM 2020-004 clarifies when income is recognized and the company's tax withholding deposit liability accrues for nonqualified stock option exercises, stock-settled SAR exercises, and payouts of restricted stock units.
Cover letter for a report ESPP transactions distributed to participantes for tax purposes
Stock compensation income for nonemployees is now reported on the new Form 1099-NEC. Learn 5 things to know about this change.
Three things you don't want to overlook in planning for 2020 year-end.
The Social Security tax wage cap will increase in 2021 and a new form for reporting compensation paid to nonemployees.
This presentation are a set of example sample flow charts that explain how employees should use the information in Forms 3921 and 3922 to report ISO and ESPP transactions on their tax returns. There are separate flow charts for situations where the 1099 reporting is unknown, is known to be net of fees, and is known to not be net of fees.
A checklist of income that should be reported on Form W-2 for various stock plan transactions.
Sample survey to ask employees who hold shares acquired under incentive stock options if they sold, gifted or otherwise disposed of their shares before the statutory holding period lapsed.
Understanding time consuming accounting and legal practices in equity compensation
A deep dive into the many challenges facing issuers with a retirement eligible population.
Everything you need to know about U.S. year-end tax reporting!
Describes the IRS procedures for withholding and depositing payroll taxes.
Explains Form W-2 reporting requirements for nonqualified stock options, incentive stock options (ISOs), Section 423 employee stock purchase plans (ESPPs), and qualified equity grants.
Guidance on the deferral of the employee portion of Social Security tax under the 2020 payroll tax holiday.
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