Company sponsored stock plan

[Klaus Dahlke]

On Sun, 31 Dec 2017 10:00:55 -0500
Mike or Penny Novack <stepbystepfarm at dialup4less.com> wrote:

> On 12/30/2017 4:39 PM, Klaus Dahlke wrote:
> > Hi Wolfgang,
> > I have modeled a comparable plan as follows: first of all, I record my salary only net. Salary is what is posted to my bank account after all deductions.
> >
> > I you don't participate in such plan, posting is straight forward, e.g.:
> > Bank <-> Income:salary -> 1000
> >
> > If you participate in the plan, a further account is helpful to show the plan contribution. Also, the amount transferred from your company to your bank is reduced by your own contribution and the taxation for companies' addition.
> Stop --- this advice depends on jurisdiction (in the US, the 
> contributions if "pretax" are taxed only at distribution time many years 
> down the road). But there may be other complications. The employer 
> contribution is usually "conditional" becoming vested over time.
> 
>   Accounting for a 401k is complicated.
> 

Acutally, I am not sure whether Wolfgang is engaged in a 401k plan or he just enjoyes 'share based compensation' as in my case (not unusual these days in Germany). The company shares I buy I can sell the next day I have acces to. Wolfgang mentioned reporting in Euro, so my inital guess was that it is plain 'share based compensation'.

Let's wait and see whether Wofgang gives more information.

Best regards,
Klaus