An ESPP lets you set aside a percentage of your pay to buy stock of the company you work for.
Four things to know about ESPPs
- Your contributions are matched in part or in full by your employer.
- The total amount is used to buy shares of the company at market value every pay period.
- Your employer’s matching contributions are fully taxable to you as employment income.
- Many employee stock purchase plans let you hold your stock in a Group RRSP so that contributions are tax deductible.
Learn more about investing in stocks.
Content in this section is provided in partnership with Investor Education Fund, a non-profit organization founded and supported by the Ontario Securities Commission that provides unbiased and independent financial tools to help Canadians make better money decisions. To find out more, go to: GetSmarterAboutMoney.ca