Viewing: IRS Issues Memorandum Providing Guidance on » Search

IRS Issues Memorandum Providing Guidance on Income

Inclusion, FICA, and Income Tax Withholding for Stock- HB Blogs Latest Comments Tags
Settled Equity Awards
Posted on June 4, 2020 by Haynes and Boone Benefits Group in Firm, Practical Benefits Lawyer
JUNE 2020
The IRS recently issued Generic Legal Advice Memorandum No. AM 2020-004 (the
S M T W T F S
“GLAM”) to address when income from nonqualified stock options, stock-settled stock
appreciation rights, and stock-settled restricted stock units is (i) includable in an 1 2 3 4 5 6
employee’s gross income, (ii) subject to FICA taxes, and (iii) subject to federal income
7 8 9 10 11 12 13
tax withholding. In addition, the GLAM provides a discussion of the deposit rules for
FICA and income tax withholdings that have been withheld with respect to such equity 14 15 16 17 18 19 20
awards, including the “One-Day” rule (or the Next-Day Deposit Rule) that requires
21 22 23 24 25 26 27
employers to deposit employment taxes on the next banking day after $100,000 or
more in employment taxes have been accumulated. The GLAM provides a series of 28 29 30
illustrative examples and analyses of such issues. The GLAM does not, however, « MAY
address the impact of an employer’s ability to defer employment tax deposits under
Section 2302 of the Coronavirus, Aid, Relief and Economic Security Act (the CARES Act)
for the period of March 27, 2020 through December 31, 2020.

The GLAM can be found here. Tags

ACA Affordable Care Act CARES Act Claims
COBRA copyright coronavirus covid-19
Related Topics: CARES Act, coronavirus, employment taxes, Equity, Equity Compensation, Defined Benefit Plans
Equity Plan, Federal Insurance Contribution Act, FICA, Generic Legal Advice Memorandum, Defined Contribution
GLAM, Gross Income, Incentive Stock Option, Next-Day Deposit Rule, nonqualified stock
options, One-day rule, restricted stock unit, RSU, SAR, stock appreciation right, Stock
Plans Department of Labor Determination
Option, Stock Plan, stock-settled, taxable income, taxes Letter Disability DOL EEOC ERISA
Executive Compensation
About Haynes and Boone Benefits Group
Facebook FAQ Fiduciary Global
The lawyers of our Employee Benefits and Executive Compensation Practice Group are Health and Welfare
readily able to assist companies on a nationwide basis with implementing sophisticated Health
healthcare Health Plan
benefit plans and providing answers to their most challenging compensation issues.
Additionally, our lawyers are well aware of the daily employee benefits challenges facing
Reform HIPAA HSA Internal Revenue
Code Internal Revenue Service
companies of all sizes and are capable of helping in-house lawyers and human resources
personnel with the day-to-day advice and guidance necessary to properly administer International IRS licensing litigation
employee benefits plans. Notice PBGC privacy Puerto Rico Retirement
View all posts by Haynes and Boone Benefits Group Plan Retirement Plans
SEC social media SPD Supreme Court tax
« IRS Issues Proposed Rule on IRS Relief Allows Individuals to Make Treasury
Withholding from Periodic Payments Participant Elections Electronically »
from Pensions and Annuities

Leave a Reply
Name (required)
Archives
Archives
Mail (will not be published) (required)

Select Month
Website

Actions

Log in

Entries RSS

Comments RSS
Submit Comment
WordPress.org

© 2020 HAYNES AND BOONE, LLP: ALL RIGHTS RESERVED TERMS PRIVACY POLICY ATTORNEY ADVERTISING