With Computershare, you have a trusted partner you can rely on to get the job done and relieve the burden that comes with Employee Share Scheme tax reporting. Let us handle the regulation and compliance, so you can focus on achieving your business goals.
Read on to understand more about ESS reporting and how Computershare supports your company through the process.
What is ESS reporting?
ESS reporting is an annual reporting requirement for companies that offer employee share plans to Australians. You must provide ESS statement to your share plan participants, as well as an ESS annual report to the Australian Taxation Office (ATO). These reports and statements contain information on employee share plan taxing events that have occurred during the tax year, to enable efficient and effective management of company and plan participant taxation obligations.
What are my obligations?
Understanding tax events in relation to employee share plans can be complex. It usually starts with understanding when your company’s share awards become taxable i.e., at vesting, exercise or cessation of employment. Then you’ll need to cross reference which taxing rules apply for when the ESS interest was granted, to make a determination. This is why having Computershare as your share plan partner puts you at an advantage. We take the hard work out of tax reporting, and help you fulfil your obligations.
What if we have Australian employees working overseas?
If this is the case for your company, it can be difficult to ensure you’re reporting correctly. There is a lot to consider when reporting for mobile employees. Computershare operates in multiple markets around the world, so we can support you to ensure your reporting is correct and takes into account any employees who have worked overseas for a period of time during the tax year.
How does Computershare help?
When we say we take the burden out of ESS reporting, we mean it. We understand your business and your participants. We don’t ask you to tell us which participants to run reports on – because we already understand who they are.
Here’s an overview of how we work with you to make the ESS tax reporting process simple.
Each year, Computershare works to ensure our systems are upgraded in line with any ATO changes, including tax legislative changes, and ATO required reporting specifications which are updated generally annually
What we’ll ask of you: During this period, we’ll need you to confirm ESS provider details and return the filing declaration.
Every year, we complete a ‘dress rehearsal’ process throughout May and June, ahead of EOFY. We run test statements and reports during this period to ensure all variables are accounted for.
What we’ll ask of you: During the practice period, we’ll ask you to review and approve draft statements, and source any missing employee TFN information.
From 1 July, we process participant statements to ensure they have the tax information they need by the 14 July deadline. During July we also submit annual reports to the ATO, well ahead of the 14 August deadline.
What we’ll ask of you: During the production phase, we’ll ask you to approve live statement samples.