Technical topics regarding tax preparation.
Stock Award to Employee
Post a reply

17-Mar-2019 9:45am

S Corp to "grant"/award stock to Employee, FMV $100k. Ordinary income to EE.
How would it be reported...add to EE's W-2, subject to withholding?
BIG question, is it deductible by the corporation?
Entry: Debit Bonus, Credit Add'l Paid in Capital?
Or just plop on the W-2 as "phantom" income?
Thank-you!

17-Mar-2019 9:57am

This is actual stock? Not phantom stock or an option to buy?
If actual stock FMV is W-2 compensation. Yes Dr Bonus, Cr contributed capital.
Last edited by sjrcpa on 19-Mar-2019 8:47am, edited 1 time in total.

17-Mar-2019 10:55am

Any restrictions, any section 83 planning? Any market for the stock?

18-Mar-2019 10:09am

Does the employee actually want the stock? ;p
Post a reply