Learn about Redwood and be one of the first to join the conversation

Visit Redwood Community
New Rules on taxation of employee stock options - Canada — Cloud Customer Connect
You're almost there! Please answer a few more questions for access to the Applications content. Complete registration
Interested in joining? Complete your registration by providing Areas of Interest here. Register

New Rules on taxation of employee stock options - Canada

Question
3
Views
0
Comments

Summary:

The Canadian federal government announced new rules for the taxation of employee stock options, which will be effective for stock options granted after June 30, 2021. This includes imposing a $200,000 annual vesting limit (based on the value of an option’s underlying shares at the date of grant) on options that can qualify for the 50% employee stock option deduction

Content (required):

I am trying a few different scenarios (new elements) to calculate this new rule but am unsure of how to get the system to do the calculation.

The understanding is, if the amount of the transaction is less than $200,000 for the year, CPP and EI should be deducted on the full amount (until employee reaches max for the year), but only half of the transaction should be taxed.

Howdy, Stranger!

Log In

To view full details, sign in.

Register

Don't have an account? Click here to get started!