N.J. Admin. Code § 12:16-4.16

Current through Register Vol. 56, No. 11, June 3, 2024

Section 12:16-4.16 - Stock options

(a) The value of a stock option is taxable remuneration at the time the option is exercised when the individual exercising the option is a current employee. The value of the stock option is also taxable remuneration when exercised after separation from employment but during the same calendar year in which the separation occurred.

(b) The value of a stock option is not taxable remuneration when exercised by a former employee in a calendar year following the calendar year in which the separation occurred.

(c) A wholly owned subsidiary company is the employer responsible for contribution payments when an employee of the subsidiary company exercises stock options of the parent corporation.

N.J. Admin. Code § 12:16-4.16

New Rule, R.2005 d.108, effective 4/4/2005.
See: 36 N.J.R. 5651(a), 37 N.J.R. 1030(a).
Recodified from N.J.A.C. 12:16-4.15 by R.2009 d.20, effective 1/5/2009.
See: 40 N.J.R. 5167(a), 41 N.J.R. 258(a).
Former N.J.A.C. 12:16-4.16, Deferred payments, recodified to N.J.A.C. 12:16-4.17.