Reduce time, costs and compliance risk while increasing efficiency and accuracy.
Automating Employee Share Scheme reporting
A single solution capable of meeting all your Employee Share Scheme obligations.
Employee Share Scheme (ESS) reporting is an annual tax reporting requirement for companies that provide shares, rights and options to their employees under an employee share scheme.
PwC has recently expanded our Workforce Automate offering to include an Employee Share Scheme module which can quickly produce all the documentation you require to comply with your Australian tax obligations for any award type and derive greater value from these schemes.
Your reporting requirements and obligations
Without access to an efficient reporting tool, ESS reporting can be a burden. This is particularly so for foreign inbound companies or Australian companies with mobile employees. There is additional complexity and consideration required for employees who have worked across several jurisdictions, requiring calculations of the correct apportionment of assessable amounts, as well as adjacent reporting obligations which can inadvertently be overlooked.
PwC’s ESS module allows us to take multiple data sets and inputs and translate these into accurate outputs in a meaningful and importantly cost-effective way. In one tool and with essentially one upload of data, PwC’s ESS module will generate:
- Employee ESS statements
- Employee breakdown statements showing exactly how amounts on the ESS statement are calculated (including for mobile employees) and converted into Australian currency
- A cover letter explaining to employees how the income on their ESS statement needs to be reported in their tax return
- An employer ATO report ready for lodgement with the ATO
- A schedule detailing the ESS income subject to payroll tax per state (including an analysis of the position for mobile employees); and
- A schedule detailing the ESS income for WGEA reporting.
Annual report and ESS statements
The ESS annual report needs to be provided to the ATO by 14 August following the end of the tax year. ESS statements need to be provided to employees by 14 July following the end of the tax year. The ESS module generates these documents using your data, and includes a helpful explanatory covering letter for employees and accompanying breakdown of their reportable discount.
State payroll tax
State payroll tax is due in relation to employee equity awards either in the year of grant, or when they “vest” for state payroll tax purposes. It can be complex because there are differing taxing points for payroll purposes compared with ESS Reporting.
Gender pay gap
Workplace Gender Equality Agency (WGEA) requires that companies with more than 100 Australian employees provide information annually on remuneration of employees by gender. This calculation includes equity awards provided to employees. The complicating factor is that the time period captured by a WGEA report often does not mirror the time period for an ESS report.
Are you ready for the 2026 ESS reporting season?
Key dates for ESS reporting:
- 14 July deadline to deliver ESS statements to your employees
- 14 August deadline to lodge your ESS annual report
ESS reporting is an annual tax reporting requirement for companies that provide shares, rights and options to their employees under an employee share scheme.
Whilst employee equity continues to be a popular way to incentivise employees globally, the volume of reporting required by many employers has significantly increased over time. For those using Australian share plan administrators, many of the challenges with reporting can be streamlined, but reporting for foreign inbound companies or Australian companies with mobile employees continues to be challenging and time consuming.
Tips for ESS reporting season:
How can we help?
We work with hundreds of companies to meet their ESS reporting, payroll tax (on equity) and gender pay gap obligations each year. Our ESS reporting tool allows us to take multiple data sets and inputs and translate these into outputs in a meaningful and importantly cost-effective way. The outputs meet the regulatory requirements but also help employees understand what they have received in equity which adds to the perceived value of the award they are receiving. Our assistance will also allow you more time to focus on the strategic aspects of your employee equity programs.
Contact us
