Employee Stock Purchase Plan Essentials

Why this program is critical:
  • Employee stock purchase plans pose unique challenges in administration and reporting.
  • Compliance with Section 423 is tricky—one small mistake could disqualify the entire plan from preferential tax treatment.
  • Accounting for an ESPP can be complex, especially if your plan offers resets, rollovers, or allows contribution changes.
  • Failures to comply with the tax reporting requirements could result in substantial penalties.
How we present the course:
  • Webcast sessions with industry experts will explore complex tax, accounting and administrative issues.
  • Supplemental materials provide in-depth coverage of session topics.
  • Interactive quizzes reinforce learning and test your comprehension of the materials presented.
All webcasts are archived and available online after the live presentation. You can begin the program at any time!
 
What we cover:
Two webcasts scheduled in one week cover will cover a broad range of topics, including:
  • Characteristics of ESPPs, including types of plans, features, offerings and purchase periods.
  • Applicable tax law, income recognition, and reporting requirements.
  • Accounting and valuation, including modification accounting for resets/rollovers and contribution changes.
  • Communicating plan benefits to employees.
  • Reporting and international issues.
    • Note: This course covers Section 423 qualified ESPPs only.
Class Schedule:

Our first session will focus the requirements for an employee stock purchase plan under IRC Section 423, including share limits, discounts, contributions, the $25k limit and tax consequences for employees. Administrative processes and procedures for contributions, terminations and/or withdrawals, resets, rollovers and purchases will be discussed. Finally, we’ll review best practices for employee communication, to promote understanding and enhance the benefit of the plan.

2.00 hours of continuing education for CEPs

This session will examine the accounting treatment for employee stock purchase plans, including modification accounting for resets, rollovers, withdrawals and contribution changes. We’ll take a look at how the ESPP calculates into earnings per share and corporate tax effects. Tax reporting will be presented, including Section 6039 and reporting dispositions on Form W-2. Finally, we’ll explore international issues, including alternatives to payroll deductions in jurisdictions where it is disallowed, securities issues and potential entitlement issues.

2.00 hours of continuing education for CEPs