Employee Stock Purchase Plan
- Employee Stock Purchase Plan
In the United States, an Employee Stock Purchase Plan (ESPP) is a tax-efficient meansby which employees of a corporation can purchase the corporation's stock, often at a discount.For example the discount might be 85% of the stock price at a certain date as determined by the plan.
External links
*The requirements for setting up an ESPP is given in Title 26 [http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00000423----000-.html § 423]
*An example of calculating taxable income is given in [http://www.irs.gov/publications/p525/ar02.html IRS Pub 525 (2006)] .
*More guidance can be read at [http://www.irs.gov/publications/p15b/ar02.html IRS Publication 15b (2006)] .
*Taxation of ESPP sales [http://turbotax.intuit.com/tax_help/employee_stock_purchase_plans_turbotax/article]
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