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ESPP Software – Employee Stock Purchase Plans

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How do Employees and Employers benefit from ESPPs?

Stock ownership through ESPP is proven to increase employee engagement – but they’re not just something that’s good for an employee: they’re good for business too and statistics show that having an ESPP can help companies grow and become more profitable. 

Having an automated ESPP platform is key for employees as it helps align an employee’s interests with shareholders, as well as creating a cultural corporate identity of employee ownership.

Giving employees online access to their ESPP holdings is critical to helping them understand how an ESPP works. It increases ESPP plan participation as well as allowing employees to transact with ease on their purchased and matching shares.

Global Shares Software is fully integrated, making it convenient for employees to purchase company stock through payroll deductions.

The Global Shares Employee Portal is the most advanced online ESPP management platform in the stock plan administration industry. It gives employees 24/7 personalized access to their ESPP equity holdings, as well as unprecedented visibility, interaction and control.

With the ease of use at its core, this multi-lingual, multi-currency interface allows you to optimize employees’ experience, capitalize on their engagement and simplify the administration of your employee stock plan in an environment that is consistent with your company’s brand, language, ethos and corporate identity.

Employees with an ESPP will enjoy the ease of online purchase plan enrolment along with withdrawal, suspension and contribution change facilities, downloadable via their ESPP statement and much more.


What are the Benefits of ESPP Software Administration?

  1. You greatly simplify the administration of your employee stock purchase plan (ESPP)
  2. You save significantly in time and money. Our technology and experts will do the heavy lifting work for you, setting up your plan on our system and offering you so many resources & administrative efficiencies. It is quick and easy to implement allowing you to off-load manual, time-consuming processes and concentrate on your core business.
  3. You gain access to industry-leading expertise. Your assigned Share Plan Analyst & Implementation Manager will know you, your requirements and your plan in great detail and will be there to assist you at all stages of the process. Our team of sharp-minded equity compensation professionals ensure that you achieve your goals and offer you expert advice every step of the way.
  4. You empower your employees with easy-to-follow accessible tools to view and interact with their ESPP online via a company-branded participant portal.
  5. You reduce your workload thanks to the automation of key administrative tasks – tax elections, exercise options, transaction history, task notification, voting, modelling calculators, downloadable statements, grant acceptance, selling shares & much more
  6. You enhance security with the choice of a variety of login authentication options and a reduced paper trail
  7. You eliminate the risk of lost knowledge should a member of your administrative team move on and a new staff member has to learn everything from scratch
  8. You can generate ad hoc and automated reports at the click of a button, giving you access to all the reporting information and expertise you need to give your employees and executives a superior equity plan service, keep on top of the activity within your employee share plans and remain compliant with regulatory requirements
  9. You are assured compliance thanks to our automated solution, which ensures the integrity of data, accuracy & reduce legal risk
  10. You gain peace of mind and confidence knowing you have access to the endless functionality of Global Shares – the best technology in existence in the marketplace & ever-improving due to our commitment to innovation & improvement.


How can ESPP Software help you with Employee Stock Plan Administration?

Global Shares build ESPP Software with four key factors in mind; Accuracy, Security, Efficiency and Comprehensiveness.

Understanding that your business has its own unique priorities and requirements, these four components provide a solid foundation to your customized ESPP Software solution.

  • Precision
  • Comprehensiveness
  • Security
  • Efficiency


How to simplify your Employee Stock Purchase Plan with ESPP Software?

If you’re looking for an industry-leading provider of ESPP software, offering unparalleled ESPP administration efficiencies and cost savings, allowing companies running broad-based ESPPs to enjoy all the benefits of operating an employee stock purchase plan without the challenges associated with manual plan administration, you’ve come to the right place. 

If you require an online ESPP administration solution that combines ESPP stock plan expertise with daily plan administration, operational processing and participant management, there are definitely solutions for you. 

Would expert assistance help you to improve the overall performance of your company’s ESPP?

Then you need to speak with Global Shares. Our cloud-based ESPP Software is smart, intuitive, well-designed and built to cater for all the complexities of administering an ESPP.

Together we can design the right ESPP solution for you.


What are the Features Of The Global Shares ESPP Software

  1. ESPP Stock Sale And Transfer WizardsFully Branded Employee ESPP Website
  2. ESPP Calculators For Modelling Purchases
  3. Live ESPP Contribution And Purchase Statements
  4. ESPP Tutorial Videos And Dynamic ESPP FAQ’s
  5. Cloud Web Access For ESPP Employees
  6. Live ESPP Query Submittal
  7. In-Line ESPP Enrolment,  Withdrawal, Suspension & Contribution Change Facilities


Employee Stock Purchase Plans Administered

If you are operating a non-compensatory ESPP with no look-back and a 5% discount our Software can be set up to ensure that no earnings charge is taken.
If you are managing a compensatory ESPP, our Software can ensure you generate accurate ASC 718 ESPP expense, deferred tax and ESPP reports – all based on automated ESPP fair value generation and reflecting any ESPP reporting modification that may be required.


Qualified And Non-Qualified ESPP Plan Management Benefits

  • Ease of online access for all participants and administrators using our cloud-based processing system (EquityAdmin)
  • Login from a range of devices – Desktop access via computer and ESPP mobile access via tablet or smartphone
  • Personalized ESPP communication with our powerful built-in communication tools
  • Tracking of employees ESPP payroll contributions in their employee account
  • Apply ESPP discounts & auto-generate matching ESPP shares
  • Enables the purchase of shares on the open market or from authorized unissued shares
  • Allows fractional purchases and tracking, with roll forward contribution for full share purchase
  • Tracks shares by cost basis, acquisition date, sale or transfer dates
  • Tracks disqualifying disposition for shares sold from account
  • Ensures regulatory compliance with the ESPP $25,000 limit
  • Facilitate annual form 6039 processing for ESPPs
  • Allows dividend reinvestment or payments


Qualified Plans


Section 423 Plans – Stock is offered to employees, often at a discount from fair market value, using treasury or authorized but unissued shares, in accordance with Section 423 of the IRS code.

Non-Qualified Plans


Contributory plans – Your company typically contributes a specified dollar amount and/or a non-qualified discount toward employee stock purchased on the open market.
Discount/match plans – Stock is offered to employees at a discounted price or a company can contribute an amount that matches all or a percentage of the employee’s contribution.
Open market plans – Shares are purchased on the open market utilizing regular payroll deductions. There is no discount or company contribution.


Disqualifying Dispositions

Our software automatically records all disqualifying dispositions at the time of sale to capture the ordinary element on employee Form W-2.

You can receive automated updates when ESPP shares are sold within either of the following time-frames:

  • Less than one year after purchasing them
  • More than one year after purchasing them, but less than two years after the offering date;

You can also document all sale information and ordinary income with our ESPP reporting suite.


Cost Basis

It is critical for companies and employees to be able to track the cost basis for ESPP purchases and sales, to accurately file taxes and ESPP returns.

With our platform the compensation income from qualifying dispositions cost basis is recorded as follows:

  • The lesser of the amount of the discount based on the grant date fair market value (FMV), multiplied by the number of shares acquired, or
  • the sales price per share minus the actual price paid per share times the number of shares.

You can ensure that this critical ESPP information is instantly available to both participants via their online statements as well as to company ESPP administrators.


Tax Treatment

You can enable tax-qualified restrictions, capping employee purchases of more than $25,000 in shares under the plan in any calendar year.

You can also ensure that all ESPP qualifying dispositions are met to ensure employees have no withholding taxes when ESPP stock is sold.

The system will automatically apply taxes when disqualifying dispositions occur, based on your ESPP plan rules. With non-qualified ESPPs the system is designed to apply the correct tax treatment.

Subsequent sales are also tracked and any additional gain on the sale above the market price on the purchase date is reported as capital gains.


Why Partner With Global Shares?

Global Shares is a global provider of highly specialized industry-leading ESPP & equity management software, stock plan administration services and reporting tools. We offer specialized ESPP solutions to corporate clients and their employees worldwide.

You benefit from the fastest set-up and most cost-effective running costs thanks to our settings-based technology, which is developed & managed 100% in-house at Global Shares and is carefully designed for flexibility and simplicity of use.

All your ESPP requirements are catered by our online system, offering you a comprehensive range of dynamic equity administration services and exceptional financial reporting tools to transform your Employee Stock Purchase Plan.

Our clients attribute our success over the past 10 years to our refreshing customer-centric approach, the ease-of-use and cost-effectiveness of our fully customizable products and the support they get from our friendly team of experienced equity experts.

To read more about ESPPs and how we can work with you, please click here.


Request a free demo

We would be delighted to discuss or demo our ESPP Software with you in more detail. Let us show you how with a quick demo of our Software.

Please Note: This publication contains general information only and Global Shares is not, through this article, issuing any advice, be it legal, financial, tax-related, business-related, professional or other. The Global Shares Academy is not a substitute for professional advice and should not be used as such. Global Shares does not assume any liability for reliance on the information provided herein.

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