Employee share schemes

What

Arrangement to issue or transfer company shares to a person who will be, is, or has been an employee or shareholder-employee of the company or group.

Who

Employee, shareholder-employee and associates of both. Director getting a PAYE income payment (includes a schedular payment).

An employee share scheme (ESS) is an arrangement involving the supply of shares from a company to an employee. A benefit exists when shares are provided for free or below market value.

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Employee share scheme rules An employee share scheme (ESS) is an arrangement for issuing or transferring shares in a company or a group company to a past, present or future employee or shareholder-employee. An employee for tax purposes can also include a director.
Deducting tax from employee share scheme benefits In some situations employers must withhold tax from an employee share scheme (ESS) benefit. In other situations the employer can choose whether to withhold tax.
Filing employment information about employee share scheme benefits You must file employment information about the value of an employee share scheme (ESS) benefit you provide to an employee, even if no tax is withheld from the benefit.
Receiving employee share scheme benefits If you receive shares in your employer's company for free or below market value because of your employment relationship then you will generally have an employee share scheme (ESS) benefit.

Ngā painga kaupapa hea ā-kaimahi Employee share schemes

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Employee share schemes