CANADA - Computershare Extends TFSA Benefits to Canadians Who Participate in Employee Share Purchase Plans - 7 Jan 2009
Computershare Extends TFSA Benefits to Canadians Who
Participate in Employee Share Purchase Plans
Posted
: Tue, 27 Jan 2009 23:34:31 GMT |
Author
: Computershare Trust Company of Canada |
TORONTO, ONTARIO -- 01/27/09 -- On January 1, 2009, Computershare Trust
Company of Canada began offering Group TFSAs for employee share
purchase plans (ESPP). Share purchase plans offered within the
framework of a TFSA enable employees to acquire equity and share in
their company's success while tax sheltering the dividends earned and
capital gains realized from their investments.
"We know that the average annual investment in an ESPP per employee
is usually less than $5,000," says Dave Nugent, Senior Vice President
of Computershare Plan Managers, "We also know that the ESPP is a
contributionbased, mediumterm savings vehicles for people. Both of
these features make the Group TFSA a great fit for members of ESPP
programs."
Within an ESPP, employees make small deposits through payroll
contributions that are normally matched at some level by the employer.
The taxes that become payable on dividends and capital gains erode the
earnings in an ESPP. Offering the TFSA within share purchase plans
provides a tax shelter for that growth.
Generally ESPPs only attract a portion of employees to invest in the
company stock depending on the employer match. Computershare expects
that offering this taxsheltering benefit within a share purchase plan
will appeal to employees and increase their participation in company
plans.
The TFSA is a new registered account that was introduced by the
federal government in the 2008 budget. The TFSA is available to all
Canadian residents who are 18 years of age and older, and allows
eligible contributors to save up to $5,000 in investments including
cash deposits, GICs, mutual funds, stocks and bonds. Visit the Canada
Revenue Agency website (link to: http://www.craarc.gc.ca/tx/rgstrd/tfsaceli/bteng.html)
or the TFSA government website (link to: http://www.tfsa.gc.ca/) to
view a complete list of eligibility requirements and guidelines.
About Computershare Limited (CPU)
Computershare (ASX: CPU) is a global leader in share registration,
employee equity plans, proxy solicitation and other specialized
financial, governance and communication services. Many of the world's
largest companies employ our innovative solutions to maximize the value
of their relationships with investors, employees, customers and
members.
Computershare has approximately 12,000 employees across the world
and serves 17,000 corporations and 100 million shareholders and
employee accounts in 17 countries across five continents. For more
information, visit www.computershare.com.
Contacts:
Computershare Trust Company of Canada
Leah Young
Director, Marketing
(416) 263-9278 or Cell: (647) 405-7532
Email: leah.young@computershare.com
Website: www.computershare.com
Topic | Replies | Likes | Views | Participants | Last Reply |
---|---|---|---|---|---|
BAKER & MCKENZIE -Global Equity Services Question of the Quarter: Loi Macron and the French-Qualified RSU Regime | 0 | 0 | 668 | ||
Deloitte Global Update - United Kingdom | 0 | 0 | 495 | ||
Client Alert - Brexit: Impact On Your Global Share/Incentive Plan - Baker & McKenzie | 0 | 0 | 597 |