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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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If a non-employee exercises his options, does the plan sponsor

Resolved Question:

If a non-employee exercises his options, does the plan sponsor (the company) have any responsibility to submit taxes on his behalf or do they just report the taxable income (the spread) on a 1099? BTW - It is Canadian company and a US based consultant.
Submitted: 4 years ago.
Category: Tax
Expert:  Megan C replied 4 years ago.

MyVirtualCPA :

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

MyVirtualCPA :

How are you today?

MyVirtualCPA :

If you are a non-employee, the amount will be shown to the IRS on form 1099-MISC and there is no withholding requirement

MyVirtualCPA :

However, the non-employee should calculate his or her estimated tax and submit an estimated payment to the IRS by filling out form 1040-ES

MyVirtualCPA :

So, to answer your question, they will just report the taxable income to the IRS

Expert:  Megan C replied 4 years ago.
Linda

I am sorry, but we are having technical difficulties and I noticed that you are online waiting for an answer, yet were unable to join the chat. If you cannot view my response, let me know and I will copy it for you here. Otherwise, please rate my response as "excellent" so that I may receive credit for assisting you today.

If you have further questions, please reply via the button below

Thanks!
Customer: replied 4 years ago.

Hi it looks like we are connected now

Expert:  Megan C replied 4 years ago.
Yes, Linda we are. Do you have any further questions for me? My response was:

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

How are you today?

If you are a non-employee, the amount will be shown to the IRS on form 1099-MISC and there is no withholding requirement

However, the non-employee should calculate his or her estimated tax and submit an estimated payment to the IRS by filling out form 1040-ES

So, to answer your question, they will just report the taxable income to the IRS

 

If you need more information, please reply. Otherwise, you can rate my response as "excellent" so that I can receive credit for assisting you today.

Megan C and other Tax Specialists are ready to help you
Customer: replied 4 years ago.
I can't figure out how to rate you. This site is veny clunky....
Expert:  Megan C replied 4 years ago.
Linda

It looks like you have rated. I received credit for the answer. Thank you.

There must be a site glitch and instead of "rating" there may be an accept button. The accept button does the same thing as giving a positive rating.

Thanks again!

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