Taxation of Employee Stock & Stock Options (Currently Unavailable)
Author: Jennifer Kowal
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Using equity to compensate employees in the form of restricted stock, stock options, and synthetic stock arrangements is on the rise in recent years. These compensation tools are a common way to align the interests of employees and shareholders.
This on-demand course explains the different types of equity compensation arrangements and addresses their taxation to employees and deductibility to employers. It also covers the potential application of rules denying compensation deductions or applying penalty taxes. Finally, it covers factors to consider in efficient tax planning for equity compensation arrangements.
Publication Date: September 2018
Designed For
Tax practitioners at all levels who advise on the taxation of equity compensation.
Topics Covered
- Taxation of employee stock options
- Taxation of restricted stock
- Section 83 and Section 83(b) elections
- Section 409A's penalty provisions affecting stock options
Learning Objectives
- Identify and distinguish between different types of equity compensation
- Explain the tax treatment of various types of employee restricted stock, stock options and other equity arrangements
- Recognize the application of relevant I.R.C. sections, including section 83 and section 409A
- Identify the key element of annual executive compensation
- Differentiate between types of deferred compensation
- Recognize examples of an appreciation only award
- Describe correct statements with respect to private companies
- Differentiate requirements of sections 421 and 422 of the I.R.C.
- Identify types of compensation exempt from the requirements of Section 409A
- Recognize which percent of large CEO pay is represented by stock awards
- Describe vesting date
- Identify the type of equity-based compensation are within the scope of Section 409A
- Describe the ramifications of backdating
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Basic understanding of taxation of equity compensation.
Advance Preparation
None
