My company issues imputed stock grants to our employees twice a year. These stock shares are given to our employees at FMV. Our payroll service takes additional withholding out of the employee's paycheck to cover the taxes on the FMV of the stock grants. Would proper
For example an employee is issued 100 shares of stock valued at $10 eachThe accounting entry would be:
Payroll Expense-Stock Grants $1000
Owner's Equity $1,000