Procedures, rules, eligibility, and contribution amounts vary from company to company. Generally, however, you enroll in a plan by completing a subscription form or agreement that authorizes payroll deductions and then submitting it to the appropriate office or department before the applicable enrollment date (e.g., by the 15th of the month before the beginning of a quarter). Your company may call this the "election" period. Some companies let you enroll online through a private company website or through a designated stock plan provider.
Alert: Once you decide to participate in the ESPP and authorize payroll deductions, you may need to affirmatively revoke this election in the future to avoid being automatically enrolled in new offering periods. Also confirm whether your company automatically enrolls new eligible employees in the ESPP (with the right to withdraw before the purchase date), although this practice is much less common with ESPPs than it is in 401(k) enrollment.
If you want to enroll after the initial enrollment period begins, check with your company for when (or whether) it will permit this. |
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