Transfer of Stock for Employee's Services: Employment Law Manual Updated

Author: Rena Pirsos, XpertHR Legal Editor

The Internal Revenue Service has issued final regulations clarifying when a "substantial risk of forfeiture" exists when property (e.g., stock) is transferred in connection with the performance of services by an employee. The final regulations adopt proposed regulations with minor changes. They apply to property transferred on or after January 1, 2013.

The Taxation of Employee Compensation section of the Employment Law Manual has been updated to reflect these new regulations.