Tax Center Global Tax Guide / Glossary / Discussion / About Us
Register Log In
Core Concepts   
Valuation & Expensing   
Underwater Options   

Annotated diagram of Schedule DTax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.

Basics: Grants

Are stock options or restricted stock ever granted to part-time and hourly employees?
Yes. Many companies have broad-based stock plans that extend to the lowest-level employees, including hourly and part-time workers. Depending on the type of grant, companies can base the awarding of grants on a required number of hours worked.

Part-time executives can also receive grants, as startup and pre-IPO companies sometimes have part-time CFOs or other senior finance, sales, or management executives (or use them as consultants). These individuals often leave well-paid positions to consult with several startups at once (hoping one takes off) and demand significant equity in the entities that employ their services.

Alert: If you switch from full-time to part-time status, you should check the effects of this on your eligibility for stock grants and the vesting on existing grants. See a related FAQ.
Print this FAQ: Printer icon
Share this FAQ:
Share this article on LinkedIn Share this article on Facebook Share this article on twitter
Prior FAQ in list Return to list Next FAQ in list