Don’t Overlook This ESPP Requirement: Reporting Qualifying Dispositions
As year-end reporting picks up, one topic always creates questions: qualifying dispositions under a Section 423 ESPP. Companies of all sizes still struggle with whether these sales need to be tracked and reported, and who...
Navigating Insider Trading Rules in Your ESPP: Understanding Blackout Periods, Legal Gray Areas, and Best Practices
When it comes to Employee Stock Purchase Plans (ESPPs), few topics create as much uncertainty as insider trading and blackout windows. While most equity plan professionals can easily explain the rules for option exercises or...
Navigating the $25,000 ESPP Limit: What It Is, Why It Matters, and How to Work With It
Employee Stock Purchase Plans (ESPPs) are one of the most effective ways to help employees become company owners. But one IRS rule often causes confusion: the $25,000 purchase limit. This guide breaks down what the...
Qualified ESPPs: How to Navigate Tax Rules and Maximize Benefits
Qualified 423 Employee Stock Purchase Plans (“ESPPs”) have the potential to offer meaningful tax benefits to employees if they meet the qualified disposition rules. In practice, however, the rules around how to determine income tax versus...
Preparing for IPO Success: Your Comprehensive Guide for ESPPs
Employee Stock Purchase Plans (ESPPs) are a powerful tool for fostering employee ownership and engagement. For companies preparing to go public, however, managing ESPPs during an IPO transition demands strategic planning and adaptability. This guide...
Are Your Employees Being Overtaxed on Their Equity Compensation? Understanding Cost Basis and ESPP Taxation
Equity compensation plans, such as Employee Stock Purchase Plans (ESPPs), are valuable tools for attracting and retaining top talent. However, the tax implications associated with these plans can be a source of confusion for employees,...
The Issuer’s Guide to Cashless Participation
Cashless Participation 101 Maybe you’ve seen Cashless Participation mentioned in a LinkedIn post, perhaps you’ve seen it show up on an industry conference agenda, or maybe you’re offering it at your company. Regardless of where...
The Benefits of Optimizing Your ESPP
By increasing employee engagement, ESPPs boost overall corporate performance. ESPPs are broad-based programs that provide companies with a cost-effective way to extend ownership opportunities to their employees. While that sounds great on paper, the real...
