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NASPP Essentials

Figuring Out Section 6039 Filings
Jan 12,2021

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.

Tax Reporting Guide for Stock Plan Transactions
Nov 18,2020

A series of tables indicating where income attributable to various stock plan transactions is reported on Form W-2 and Form 1099-MISC.

Ten Facts About the ESPP $25,000 Limitation
May 05,2020

The article offers an in-depth explanation of how to apply the Section 423 $25,000 limitation to your ESPP.

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Latest Developments

New Rules for 401(k) Plans Affect ESPPs
Jan 16,2019

The alert summarizes an IRS Notice of Proposed Rulemaking that will eliminate the requirement to suspend contributions in an ESPP after an employee receives a hardship withdrawal from the company's 401(k) plan.

Tax Changes for 2019
Nov 14,2018

Changes to tax withholding rates and compensation thresholds for various tax-related purposes for 2019.

Reminder:  ISO and ESPP Information Returns and Statements
Jan 18,2018

Participant statements required under Section 6039 are due by January 31. Here's what you need to know.

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Cadillac ESPP Considerations: What You Need to Know Before Adopting
Oct 31,2019

Are you considering an ESPP with a generous offering period, lookback, and discount? This article by Infinite Equity discusses key things to consider.

ESPP Valuation – 4 Missing Pieces
Jun 28,2019

Are you recognizing more expense than you need to for your ESPP? This article by Infinite Equity looks at additional factors to consider when valuing ESPPs.

2018 Deadlines Approach to Furnish ISO and ESPP Information Statements/Returns
Jan 19,2018

Under Section 6039, participant statements for ISOs and ESPPs must be distributed by January 31.

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Four Ideas to Make Your ESPP More Equitable
Apr 13,2021
Barbara Baksa

How to assess whether your ESPP is sufficiently equitable for all employees and four ideas to help remove barriers to participation for lower paid employees.

Is Your ESPP Equal or Equitable?
Apr 07,2021
Barbara Baksa

Sure, all participants in your ESPP have the same rights and privileges, but are you really treating all employees equitably?

Trends in ESPPs: Four Facts and a Myth
Nov 04,2020
Barbara Baksa

The good news: ESPPs are common, offer great benefits to employees, and result in long-term employee ownership. The bad news: participation rates are low. These and other ESPP trends from the NASPP/Deloitte Consulting 2020 Domestic Stock Plan Administration Survey.

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Sample Documents

Example 6039 FAQ for Employees
Jan 12,2021

Sample FAQ for employees on Forms 3921 and 3922.

ISO/ESPP Flow Charts: Section 6039 Flow Charts
Jan 12,2021

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.

Sample $25,000 Limit Worksheet for Employees
May 05,2020

Sample worksheet to explain the $25,000 limit to employees.

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Webcasts

Trends & Analysis from the 2014 Domestic Stock Plan Administration Survey
Oct 16,2014

Find out the latest practices and trends in stock compensation!

Trends and Analysis from the 2011 Stock Plan Administration Survey
Sep 27,2011

Find out the latest practices and trends in stock compensation!

Podcasts

How Prevalent are ESPPs?
Jul 22,2020

Surveys & Studies

How Common are Employee Stock Purchase Plans?
Apr 17,2020

This study by Aon Rewards Solutions, with contributions by the NASPP and Fidelity Stock Plan Services, definitively answers the question of how common ESPPs are.

Survey Says: 10 Dos & Don'ts of Stock Plan Administration
Oct 17,2017

Highlights of the 2017 Domestic Stock Plan Administration Survey, cosponsored by the NASPP and Deloitte Consulting LLP.

Ayco's Updated Survey of Employee Stock Purchase Plans
Jan 13,2017

Conducted by The Ayco Company, this informal survey of 375 of Ayco’s publicly traded clients reveals that 55% now maintain some type of stock purchase plan. This article reports ESPP trends and practices, as indicated by the survey group of 200 companies. The survey reflects relative stability in the types of plans compared to similar surveys Ayco conducted two and four years ago.

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Regulations & Statutes

Notice of Proposed Rulemaking: Hardship Distributions of Elective Contributions, Etc.
Nov 14,2018

IRS notice of proposed rules which would, among other actions, eliminate the requirement to suspend contributions to an ESPP after a hardship withdrawal from a 401(k) plan.

Section 423: Employee Stock Purchase Plans
Dec 22,2017

Section 423 of the Internal Revenue Code, which defines qualified employee stock purchase plans.

Form 3922
Sep 01,2016

IRS Form 3922, used to report first legal transfer of shares acquired under a Section 423 employee stock purchase plan (ESPP).

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Recent Q&A Discussions


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The National Association of Stock Plan Professionals is the largest and oldest professional association for the stock and executive compensation community, with over two decades of leadership providing expert resources, education and other benefits for our more than 6,000 members across 32 affiliated chapters.

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