Avoid the traps when reporting on employee share plans
By Hamish Wallace
The deadline for employers to report share-based awards is approaching. The Australian Taxation Office (ATO) is increasing its focus on ESS reporting compliance so employers should be aware of some of the traps, particularly if awards have been granted to internationally mobile employees.
Share plan reporting will be required in two broad situations: if an employee was granted an award during the 2013–14 tax year and the discount on that award was taxable during that year (that is, the award was taxed ‘up front’); and if an employee was granted an award in an earlier tax year and a deferred taxing point occurred during the 2013–14 tax year.
If reporting is required, the ‘provider’ of the award (which may or may not be the employer) has to give an ESS statement to the employee by 14 July and an ESS annual report to the ATO by 14 August. Employers should remember that reporting is also required for any employees that have left during the tax year and retained tax-deferred awards under a ‘good leaver’ policy. And if an award contained a cash-out discretion in the employer’s favour (common in many US plans), but the award was share-settled during the tax year, ‘retrospective’ reporting may have also been required for ‘good leavers’, which may have required reporting within 30 days of the award being settled…
Click on the link below to read the rest of the Minter Ellison briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Minter Ellison
News from The Lawyer
Briefings from Minter Ellison
Minter Ellison presents to the construction industry its annual security of payment roundup for 2014.
The new Foreign Investment Industries Guidance Catalogue will supersede the current 2011 version from April 10 2015.