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.
A series of tables indicating where income attributable to various stock plan transactions is reported on Form W-2 and Form 1099-MISC.
The article offers an in-depth explanation of how to apply the Section 423 $25,000 limitation to your ESPP.
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.
Changes to tax withholding rates and compensation thresholds for various tax-related purposes for 2019.
Participant statements required under Section 6039 are due by January 31. Here's what you need to know.
Are you considering an ESPP with a generous offering period, lookback, and discount? This article by Infinite Equity discusses key things to consider.
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.
Under Section 6039, participant statements for ISOs and ESPPs must be distributed by January 31.
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.
Sure, all participants in your ESPP have the same rights and privileges, but are you really treating all employees equitably?
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.
Sample FAQ for employees on Forms 3921 and 3922.
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 worksheet to explain the $25,000 limit to employees.
Find out the latest practices and trends in stock compensation!
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.
Highlights of the 2017 Domestic Stock Plan Administration Survey, cosponsored by the NASPP and Deloitte Consulting LLP.
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.
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 of the Internal Revenue Code, which defines qualified employee stock purchase plans.
IRS Form 3922, used to report first legal transfer of shares acquired under a Section 423 employee stock purchase plan (ESPP).
Accounting for Auto-Enrollment in ESPP
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