Not sure if you should offer an ESPP? Check out Seven Reasons to Offer an ESPP.Download Now

So you're thinking of taking the ESPP plunge? Or maybe you're just starting to research ESPPs? Or you're wondering if the current provider you have is the right one?

You've come to the right place!
 

For more than 40 years, Computershare has administered employee share purchase plans (ESPP) of all sizes and complexity. Our solution is designed to serve the participants, to help them engage with your ESPP while providing full-service support on the administration of your plan that is thoughtful and inclusive of all your needs.

 

 


ESPP Service Highlights

Administration Service Highlights

You'll have access to an expert team to guide you through design, implementation and on-going administration, with:

Full-service support to manage your plan.
Automated enrollment for eligible employees from any device.
 
Online access to view participant accounts and run reports.
 
Participant Service Highlights

Our solution focuses first on the participant, to ensure they engage with the plan you offer:

24/7 account access across all devices lets employees manage accounts the way they want.
Full-service support through the call centre.
 
Multi-lingual/currency support makes your plan more inclusive for participants.
Single sign-on lets participants access accounts from your intranet or HR portal.
 


Got questions about ESPPs?

Check out our brief FAQ below to get started.

  • ESPP stands for employee share purchase plan. It is a contributory share plan where employees voluntarily contribute a portion of their salary to the purchase of company shares.
  • There are three basic flavours of ESPP.
    1. The first is your standard employee share purchase plan. This is a plan in which employees purchase shares of their employer via payroll deductions with shares sourced from the stock market or shares issued from treasury. Company contributions (concurrent or delayed) are employment income for participants in the year received.
    2. The second is an employees profit sharing plan (EPSP). Employees purchase shares of their employer via payroll deductions and company contributions (tied to profits of the company) with shares typically sourced from the stock market. Company contributions are employment income for participants in the year received. Shares acquired with company contributions are held in trust and subject to vesting and forfeitures.
    3. The third is an employee benefit plan (EBP). Employees purchase shares of their employer via payroll deductions and company contributions with shares typically sourced from the stock market. Company contributions are employment income for participants in the year vesting occurs. Shares acquired with company contributions are held in trust and subject to vesting and forfeitures.

  • There are many features to know when designing your ESPP. Here are some of the most common features and add-ons.

    • Company Match. For each purchase, the company matches all or a certain portion of the participant’s contribution, typically up to a maximum amount.
    • Discount. When purchases are made through the ESPP, they are made at a discount off the share’s current fair market value. The most common discount is 15%.
    • Offering Period. The time in which contributions are collected prior to the next purchase. This could be any timeframe – weekly, bi-weekly, semi-monthly, monthly or quarterly. The most common offering period is bi-weekly.
    • Vesting and forfeitures. Employer shares are conditionally credited to the employees’ share account and must be held for a period of time, after which they become vested and are owned by the employee. The shares are subject to forfeiture prior to the end of the vesting period under specified conditions.

    Add-ons

    • Registered Retirement Savings Plan (RRSP). Employees’ pre-tax contributions purchase shares of their employer via payroll deductions, subject to a personal contribution limit. Capital gains and investment income is tax deferred and withdrawals are considered employment income and subject to taxes.
    • Tax-free Savings Account (TFSA). Employees’ contributions purchase shares of their employer via payroll deductions, subject to a personal contribution limit. Capital gains and investment income is tax sheltered and withdrawals are not subject to taxes.

  • We sure think so! The ESPP is a great benefit for your employees that gives them the ability to easily become owners in the company. Check out Seven Reasons to Offer an ESPP for even more reasons.


Got more questions about ESPPs?

 

Join us for our next ESPP educational conference

Both in-person and virtual events cover all aspects of ESPPs, from design to administration to communications and more.

Find out more

 

 

 

Ready to get started on launching your ESPP? Have more questions on Computershare's ESPP solution? Or maybe you need more help understanding what an ESPP is and why you should offer one? Fill out the form below and one of our experts will reach out to you.






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