Whether you are a business owner, CEO, or manager, you need to find ways to keep employees satisfied, fulfilled and productive, as well as ensuring they want to stay with the company. A good way to make sure that employees are happy with the company is to provide employee benefits, such as the employee stock purchase plans, or ESPP. An employee stock purchase plan allows employees to buy stock options during a prescribed period, sometimes at a discount.
A company can offer workers a qualified...
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employee stock purchase plan
Understanding ESPP Stock and its Manipulation
An employee stock purchase plan allows the worker to buy stock in their company at a reduced price. It is considered compensation and when the shares are bought, you are not required to report them as compensated income.
What you do with those shares will affect how they are to be reported. For instance, if you give your shares as a gift to someone or if you sell them, you will have to report that manipulation. If you should die while you are holding said shares, they may in fact appear on th...
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