January 20, 2022
BioCT published an article by Tax Partner Katy Daiell, about stock-based compensation and the tax effects for corporations and their employees.
BioCT
By Katy Daiell, Partner, Tax & Business Services
Excerpt:
Offering an equity interest in the company in exchange for providing services gives employees a stake in the company’s success. In addition, compensation in the form of equity can serve as a retention device as employees may lose their equity interest if they don’t remain employed with the company for a certain period of time… It’s important to understand the tax effect these forms of compensation have on both the employer and employee.
