Hierarchy
SAP_HRRXX (Software Component) Sub component SAP_HRRXX of SAP_HR⤷
PA-CM (Application Component) Compensation Management⤷
PCMP (Package) Compensation management
Basic Data
| Data Element | CMP_LT_83BSL |
| Short Description | 83(b) election |
Data Type
| Category of Dictionary Type | D | Domain |
| Type of Object Referenced | No Information | |
| Domain / Name of Reference Type | XFELD | |
| Data Type | CHAR | Character String |
| Length | 1 | |
| Decimal Places | 0 | |
| Output Length | 1 | |
| Value Table |
Further Characteristics
| Search Help: Name | ||
| Search Help: Parameters | ||
| Parameter ID | ||
| Default Component name | ||
| Change document | ||
| No Input History | ||
| Basic direction is set to LTR | ||
| No BIDI Filtering |
Field Label
| Length | Field Label | |
| Short | 10 | 83(b) elec |
| Medium | 15 | 83(b) election |
| Long | 20 | 83(b) election |
| Heading | 1 | E |
Documentation
Definition
Identifies that there is no tax to the executive when a restricted stock award is made due to the substantial risk of forfeiture.
Use
If you select this field, the executive can recognize the restricted stock award as income. The executive pays the taxes on the grant (face) value as ordinary income. However, any appreciation in the shares from the time they were granted to when the restrictions were lifted is taxed at a more favorable capital gains rate. Even if the executive makes a section 83b election, the award is still subject to the risk of forfeiture.
If you leave this field empty, the executive is not taxed until the restrictions lapse and then he/she is taxed at ordinary income tax rates. However, the executive can still make a section 83b election at the time of the grant.
History
| Last changed by/on | SAP | 20030120 |
| SAP Release Created in |
