There are many types of equity compensation that an employer can include in an employee’s compensation package to attract and retain the best talent. Each kind has its own set of rules that apply to how that equity is managed, granted, and taxed. It’s important to understand these nuances if […]
Tax Rates on Qualifying Dispositions of Incentive Stock Options May Offer a Tax Buffer – But Watch Out for Investment Risk
If you have stock options, then you can access an asset that provides you with a choice. Very literally, a stock option is an option; it’s a form of compensation that gives you the right (but not the obligation) to buy shares of company stock at a set price. Acting […]
4 Factors to Consider Before Participating in Your ESPP
A good employee stock purchase plan (ESPP) is something that many consider being a no-brainer when it comes to deciding if you should take advantage or not. Contributing to an ESPP is often accomplished through convenient payroll deductions, and many participants benefit from features like lookback provisions or discounts to […]
8 Key Terms to Know About Your Employee Stock Purchase Plan
Employee stock purchase plans (ESPP) are a convenient way to purchase company stock. In an ESPP’s simplest form, employees contribute money directly from their paychecks into an employer-offered plan. At set intervals established by the company, money contributed is used to purchase shares of stock. Those shares are then deposited […]
How Your Income May Impact the Sensitivity to AMT – and What That Means for Incentive Stock Options
If you have incentive stock options, you’ve likely heard of the alternative minimum tax. This tax, or AMT, is what you may pay in years that you exercise and hold incentive stock options. The greater the spread between the exercise price of your ISOs and the fair market value of […]
Have Equity Compensation? Here Are 8 Steps To Take in the New Year
A new year can be an opportune time to review your equity compensation package. Not only does this give you a clean slate to work with, but it also affords you the most time to plan and implement your strategy for the fresh calendar year ahead. When it comes to […]
