Learn about Employee Stock Purchase Plans (ESPPs), including how to enroll and participate, and tax implications.
An Employee Stock Purchase Plan (ESPP) is the easiest and often the most cost-effective way for employees to purchase shares in your company.
Many large companies offer Employee Stock Purchase Plans (ESPP) that let you buy your employer's stock at a discount. These plans are often offered as an employment incentive, giving you an opportunity to share in the growth potential of your company's stock (and by implication, work hard ...
An employee stock purchase plan (ESPP) allows workers to buy shares of their employers' stock at a discounted price in an easy and convenient manner using after-tax payroll deductions. ESPPs are perhaps the simplest form of stock purchase plan in use today. Outside of wages and salaries, E...
Bryson, A. and Freeman, R. B. (2014) "Employee Stock Purchase Plans: Gift or Incentive?", NIESR Discussion Paper No. 439Ederhof, M. (2011). Incentive compensation and promotion-based incentives of mid-level managers: Evidence from a multinational corporation. The Accounting Review, 86(1)...
New to ESPPs or just need a refresher? Get a glimpse into how things work and some commonly used terms.What an ESPP lets you do Find out what you need to know about an employee stock purchase plan. An ESPP at a glance (PDF) Get more familiar with the key steps that occur so ...
Understanding Employee Stock Purchase Plans (ESPPs) With an employee stock purchase plan, employees have the option to buy stock in their employer at a discounted price. This is offered as a benefit of employment when they are hired, in the same way that access to a 401(k) plan for retir...
Taxation of ESPPs The taxation of employee stock purchase plans can be extremely complex. Listed below are some of the key points to keep in mind. Original stock price discounts are generally taxed as ordinary income tax. The capital gain due to the discounted price is taxed as a long-term...
AnESPP– orEmployee Stock Purchase Plan– is an employer perk that allows employees to purchase a company's stock at a discount. Qualified ESPPs, known asQualified Section 423 Plans(to match the tax code), have to follow IRS rules to receive favored treatment. The most significant implication...
Employee Stock Purchase Plansdoi:10.2139/ssrn.557139Employee stock purchase plans (ESPPs) are designed to promote employee stock ownership broadly within the firm and provide another tax-deferred vehicle for indiEngelhardt, Gary V.Madrian, Brigitte C.Social Science Electronic Publishing...