ESS reporting requirements for employers

We’ve had a few conversations lately with clients about their ESS reporting requirements, so we’ve compiled some of the information provided by the ATO to hopefully help you get started.

What is an ESS interest?

An ESS interest is either a beneficial interest in a share of a company or a right to acquire a beneficial interest in a share of a company.

These interests can come in the form of shares or stapled securities, or rights (including options) to acquire shares or stapled securities.

You’re required to provide the ATO and your employee with details of your employee’s ESS interests. If an associate of your employee acquires ESS interests that are provided for employment or services, the employee (rather than the associate) is required to include the discount in their assessable income.

Reporting to your employee

You may need to report to your employee on the following:

Reporting to the ATO

The ESS annual reports are due by 14 August each year, and 2015-16 and onwards lodgments will only be accepted electronically.

Specific information on what must be included in your ESS annual report can be found on the ATO’s website.

Extensions and amendments to a report must be done directly to the ATO. Details on this can be found on their website.

How Carbon can help

If you need help understanding how these requirements relate to you, get in touch with our experts today.