May an employer offer ISOs to leased employees?
September 4, 1999
Date: Thu, 19 Aug 1999
May an employer offer ISOs to “leased” employees? If so, are there any special or unusual tax consequences for the employer or the leased employees?
Please enlighten me. I will appreciate an insight you can provide.
Date: Tue, 24 Aug 1999
An employer may not offer ISOs to leased employees.
This is one of the reasons leased employees are filing class action lawsuits to be considered regular employees.
One of the conditions of incentive stock options is they may only be granted to employees of the granting company. Leased employees are considered to be employees of an outside service company.
I hope you find this information helpful.