423 Qualified ESPPs
No tax at grant or purchase.
At sale, generally capital gain, but ordinary income applies as well for both qualifying and disqualifying dispositions.
Non-Tax Qualified ESPPs
Tax on discount at purchase.
Tax on sale of shares. Long-term capital gain rates apply if shares held more than 1 year.
423 Qualified ESPPs
Only if disqualifying disposition.
Non-Tax Qualified ESPPs
Yes, no reimbursement required.
423 Qualified ESPPs Income Tax:
No withholding. Reporting of purchase and sale.
Social Insurance Contribution:
No.
Non-Tax Qualified ESPPs Income Tax:
Yes, on purchase.
Social Insurance Contributions:
Yes, employer pays its share and withholds employee's share.
423 Qualified ESPPs
Yes, but simple registration (Form S-8) for public company plans and exemptions are generally available for most private company plans.
Non-Tax Qualified ESPPs
Yes, but simple registrations (Form S-8) applies for public company plans and exemptions are generally available for most private company plans.
423 Qualified ESPPs
No, but plan generally must cover all employees of parent and designated subsidiaries (certain employees, including part-time and seasonal employees can generally be excluded).
Non-Tax Qualified ESPPs
No.
While there are no federal data privacy requirements, please note, the California Consumer Privacy Act ("CCPA") became effective as of 1 January 2020. The CCPA imposes a broad range of new requirements for the collection and processing of personal data of California residents.
Other U.S. states may have or may adopt similar data privacy requirements.