Date to start paying owners

[Four1oh]

I think it depends on your tax bracket. We get taxed on the ESP we buy, and I think we get taxed on the company's portion as well.

[Lakelad]

Just a question, because I'm too lazy to look myself, is there any publicly traded airline anywhere in the world paying dividends?

Lufthansa and Singapore are two on what's likely a pretty short list.

[Red1]

I am pretty sure we only get taxed on the companies portion of ESP as it's considered income. The beauty of the ESP comes from dollar cost averaging. When you think of the ESP, think of it like this: you put in $1, the company matches that $1 which gives you $2. The tax man then comes and taxes away .45 (this will vary on your province) and your left with a 1.55. So after taxes you have still made an additional .55, again the actual price of the shares becomes almost irrelevant over time because of dollar cost averaging (it just might take some time before your average price hit the actual stock price).

[MS737]

You have paid tax on that 1 dollar as part of your paycheck. The 1 dollar the company puts in is also taxed. You can shelter part or all of this total amount in an RRSP, and get your taxes back on your marginal tax rate or you can apply early with a Reduced tax at Source applied to your paycheck. You can also just by straight stock and you will be taxed at your marginal tax rate. Your dollar is taxed as part of your paycheck and the dollar the company gives you is also taxed at your marginal tax rate. Cheers.