EDD REVISES STOCK OPTION INFORMATION.

The IRS' recent clarification on the application of FICA FICA
abbr.
Federal Insurance Contributions Act

Noun 1. FICA - a tax on employees and employers that is used to fund the Social Security system
income tax - a personal tax levied on annual income

, FUTA FUTA Federal Unemployment Tax Act (US) and federal income tax withholding on statutory stock options, as outlined in IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. Notice 2001-14, has altered the EDD's treatment of statutory stock options for California payroll tax purposes.

The EDD is revising its Stock Options Information Sheet (DE 231SK) which includes the Employment Tax Treatment of Stock Options grid reflecting the current federal and California treatment of stock options.

COPYRIGHT 2001 California Society of Certified Public Accountants
No portion of this article can be reproduced without the express written permission from the copyright holder.

Reader Opinion

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:	Economic Development Division
Publication:	California CPA
Article Type:	Brief Article
Geographic Code:	1USA
Date:	May 1, 2001
Words:	70
Previous Article:	'Tis the Season.(Installment Sale Correction Act )(Brief Article)
Next Article:	REVISED FORM W-9 OPTIONAL UNTIL JULY 1.(tax identification numbers)(Brief Article)
Topics:	Stock options Taxation Tax administration Withholding tax Laws, regulations and rules

Related Articles
Southland job loss still steep but appears to be slowing, state says. (Los Angeles County)
State says 220,000 more jobs created than it first figured. (California)
INDEPENDENT CONTRACTOR REPORTING REQUIREMENTS.(Brief Article)
L.A. Unemployment Rate Likely to Rise.
Talking California Tax.(Brief Article)
FUNDING WILL HELP LYNX EXPAND FIRM.(Business)
VENTURA COUNTY JOBLESS RATE PLUNGES.(NEWS)(Statistical Data Included)
UNEMPLOYMENT DECLINES .2% IN FEBRUARY.(Business)(Statistical Data Included)
True stories: tax season tales from the TaxTalk listserve.(california tax)(tax treatment of stock options)
EDD, IRS looking for outreach volunteers.(EDD News)