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Stock Award to Employee

Technical topics regarding tax preparation.
#1
Goodday  
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171
Joined:
28-May-2014 10:05pm
Location:
USA
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!
 

#2
sjrcpa  
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1677
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23-Apr-2014 5:27pm
Location:
Maryland
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.
 

#3
Nilodop  
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11268
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21-Apr-2014 9:28am
Location:
Pennsylvania
Any restrictions, any section 83 planning? Any market for the stock?
 

#4
Noobie  
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882
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22-Apr-2014 1:35pm
Location:
Jacksonville, FL
Does the employee actually want the stock? ;p
 


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