Employee Stock Purchase Plans (cont.)


Enrollment Flexibility

At Talon, we understand that one size does not fit all. That’s why we have flexibility in our enrollment and enrollment change processes to meet the unique needs of your ESPP.

Our flexible enrollment processes allow for:

  • Enrollment windows by plan or participant group, including overlapping enrollments and purchase periods.
  • Current period contribution increases and/or decreases with controls on change amounts allowed.
  • Controls on the number of allowable current period changes.
  • Suspensions - Stopping contributions but remaining in the current purchase.
  • Resumptions – Restarting contributions.
  • Withdrawal from the current purchase.
  • Support for purchase resets in the form of contribution and enrollment carry-forward.
  • Comprehensive enrollment history logged by our applications.
  • Detailed purchase and sale history (if provided for display).
  • News, stock quotes & announcements.
Payroll Interfaces and Multi-Currency Contribution Tracking
Talon’s unmatched expertise in payroll interfaces allows for maximum flexibility in contribution accumulation tracking for your ESPP or other benefits program. We can customize data exchange processes and interface file formats for multiple payroll centers and currencies.

Talon will accumulate contribution history across payroll periods, accounting for new contributions, accrued interest, adjustments, withdrawals, purchases and balance carryovers in local currency as provided by the plan sponsor’s payroll centers. For contributory stock purchase plans, employer contributions can be distinctly tracked as part of each participant’s contribution balance. At the contribution cutoff date, Talon will convert local currency balances for each participant to the purchase currency based on plan sponsor provided exchange rates. This data can be provided in a format to meet the needs of your company’s ESPP software program or vendor. Following each purchase, Talon will convert purchase costs to local currencies and deduct corresponding purchase amounts from participant balances. Comprehensive reports and/or data feeds are then made available for each payroll center to reconcile intercompany billings, ledger entries or to facilitate an actual movement of funds. Talon c an also work with your broker or vendor to determine the number of shares to be acquired at various price points based on contribution made to an open market ESPP.

ESPP Expense Forecasting
Talon can prepare Black-Scholes expense forecasting based on beginning purchase price, anticipated contributions, contribution limits, individual share purchase limits (if provided by the plan sponsor) and anticipated exchange rates.

Talon can also prepare Black-Scholes expense summaries following each purchase based on uploaded purchase data and client provided Black-Scholes valuation assumptions. If your company utilizes a different expense method for ESPP, inquire with Talon regarding other customized ESPP valuation calculations.

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