Employment Alert: IRS Announces Two Year Moratorium on Payroll Tax Withholding on Statutory Stock Options
2/1/2001
This alert examines the announcement made by the IRS in Notice 2000-14 that incentive stock options described in Section 422(b) of the Internal Revenue Code (ISOs) and options granted under an Employee Stock Purchase Plan (ESPP) described in Section 423 (b) of the Internal Revenue Code (collectively, "Statutory Options") are exempt from FICE, FUTA and income tax withholding until January 1, 2003.
