What could an Employee Share Scheme (ESS) offer your business?

Employee Share Schemes can be attractive for New Zealand startups and small businesses. With the right structure in place, employers can offer benefits to participating employees, which can help with recruitment and retention in a competitive market.

For business owners, an ESS can help distinguish the company as an employer of choice. It can offer you a new way to view equity in the company and how you see the business’ future direction. For employees, it can be an incentive, a strong, personal reason to commit to the business’ growth.

If you are considering setting up an ESS, it’s important to seek sound financial, legal and tax advice to ensure it’s a good fit for your business, and of real benefit both to the company and your employees.

Be aware that if your company established an ESS before 2018, the tax rules have changed. It would be a good idea to review your scheme against the current tax implications to determine if the scheme is still fit for purpose for your business and your employees.

Call us. We can help.

For more information, download the Employee Share Schemes guide.