UPS stock at 10% off?

Towely

Active Member
Am I reading this right that one of our benefits is UPS stock at 10% off? Are there any restrictions? Can I say, invest 10,000 dollars in UPS stock and turn around and sell it right after for 10% profits, rinse and repeat?(I know it can't be that easy or you'd all be right which is why im wondering what the deal is, im not very stock market savy, being only 18 and everything).

Also whats the deal with the 401k plan, do they match what you put into it at all?
 

beentheredonethat

Well-Known Member
Am I reading this right that one of our benefits is UPS stock at 10% off? Are there any restrictions? Can I say, invest 10,000 dollars in UPS stock and turn around and sell it right after for 10% profits, rinse and repeat?(I know it can't be that easy or you'd all be right which is why im wondering what the deal is, im not very stock market savy, being only 18 and everything).

Also whats the deal with the 401k plan, do they match what you put into it at all?

For non union - there is a match to the 401K of 100% for the first 3 percent. For union, there is no current match to the 401K. For the stock, you have to buy it through payroll deductions, there is a limit of 10K per year. There is also a limit of approximately $6,400 per qtr. There is also some tax liabilities of selling the stock through payroll deductions, unless you hold onto the stock for 2 years. Not sure if there are other rules by UPS to prevent people from buying\selling.
 

rod

Retired 19 years
Am I reading this right that one of our benefits is UPS stock at 10% off? Are there any restrictions? Can I say, invest 10,000 dollars in UPS stock and turn around and sell it right after for 10% profits, rinse and repeat?(I know it can't be that easy or you'd all be right which is why im wondering what the deal is, im not very stock market savy, being only 18 and everything).

Also whats the deal with the 401k plan, do they match what you put into it at all?
Lord if it was only that easy! The only way to make $ off UPS stock is to - buy it one day and sell it the next. Or is it sell it one day and buy it the next. Anyway making $ off of UPS stock shouldn't be on your list of how to get rich quick. Your better off investing in hog futures.
 

Towely

Active Member
Whats the deal with union/non-union? Are ALL part time entry level jobs union jobs? How soon can I move into a non-union job?
 

25yrvet

Well-Known Member
It's been awhile since I've purchased any stock through the payroll deduction, but yes, you may purchase stock at a 10% discount . I believe you must hold onto it for 3 years before selling & the purchase price is set during the qtr by the company. Like I say , it's been awhile & it's hard for me to explain the purchase price procedure. If you're in for the looong haul it's worth it, otherwise forget it.
 

dirty moose

Well-Known Member
Discounted Employee Stock Purchase Plan

var upsers_assocImgExist = ''; var upsers_assocImgUpload = ''; if (upsers_assocImgExist != '') { if (upsers_assocImgExist.indexOf('IMG SRC=') > 0) { document.write(upsers_assocImgExist); } else { document.write(""); } } else if(upsers_assocImgUpload != '') { document.write(""); } else { document.getElementById("upsers_page_design_image_div").style.display = "none"; }
Sign up for the Discounted Employee Stock Purchase Plan (DESPP) and purchase UPS stock at a 10 percent discount.

The Discounted Employee Stock Purchase Plan (DESPP) offers you the convenience of payroll deduction to purchase UPS class A shares at a 10 percent discount. You must have six months of service to be eligible.
Visit the Mellon Investor Web site to enroll. Once you have accessed the site, follow the enrollment instructions. You will need your Social Security number/Access ID and password/personal identification number (PIN) that was mailed to you by Mellon Investor Services.
If you have any questions, please call the appropriate Mellon Investor Services toll free number listed below. Customer service is available from 8 a.m. - 7 p.m. (Eastern time), Monday through Friday. Automated Internet and telephone services are available for inquiries 24 hours a day, seven days a week.
For Class A Stock:
888-663-8325
Calls from outside the United States: 201-680-6612
TDD for Hearing Impaired: 201-680-6610

For Class B Stock:
800-758-4674
Calls from outside the United States: 201-680-6612
TDD for Hearing Impaired: 800-231-5469
 

Raw

Raw Member
It's been awhile since I've purchased any stock through the payroll deduction, but yes, you may purchase stock at a 10% discount . I believe you must hold onto it for 3 years before selling & the purchase price is set during the qtr by the company. Like I say , it's been awhile & it's hard for me to explain the purchase price procedure. If you're in for the looong haul it's worth it, otherwise forget it.
2 year hold.
 

ups79

Well-Known Member
It's been awhile since I've purchased any stock through the payroll deduction, but yes, you may purchase stock at a 10% discount . I believe you must hold onto it for 3 years before selling & the purchase price is set during the qtr by the company. Like I say , it's been awhile & it's hard for me to explain the purchase price procedure. If you're in for the looong haul it's worth it, otherwise forget it.

The price is based on the lower of the two-the first day of the quarter or the last.
 
U

UPS Stock King

Guest
It's been awhile since I've purchased any stock through the payroll deduction, but yes, you may purchase stock at a 10% discount . I believe you must hold onto it for 3 years before selling & the purchase price is set during the qtr by the company. Like I say , it's been awhile & it's hard for me to explain the purchase price procedure. If you're in for the looong haul it's worth it, otherwise forget it.

You have to hold onto it for two years. Your purchase price is the lower of the opening and closing price. Buy when it is lower and sell around September when the price goes up (when UPS buys shares for MIP payout and drives up the price.)
 
J

Just another UPSer

Guest
When you sell it, the difference between the stock price and what you bought it for goes on your W-2 and you pay ordinary income tax on that difference. When you do your capital gains/loss, make sure you use the original stock price. In other words, say the stock is at $72 and what you paid was $60 on these shares (in order to make it easy). The $12 difference will show on your W-2. On your schedule D, make sure you use the $72 per share instead of the $60, as you are already paying tax on the $12 in that year in box 1 of your W-2. On your stock statement, there is a note out to the side stating that there is a two year hold on these shares that are restricted.
 

ihadit

Well-Known Member
If you are looking to make money in the market, look at company's whose stock price is actually growing. UPS is the worst place to invest, share price has been stagnant for years.
 

jasar13

Active Member
When you sell it, the difference between the stock price and what you bought it for goes on your W-2 and you pay ordinary income tax on that difference. When you do your capital gains/loss, make sure you use the original stock price. In other words, say the stock is at $72 and what you paid was $60 on these shares (in order to make it easy). The $12 difference will show on your W-2. On your schedule D, make sure you use the $72 per share instead of the $60, as you are already paying tax on the $12 in that year in box 1 of your W-2. On your stock statement, there is a note out to the side stating that there is a two year hold on these shares that are restricted.
Stock sales do not show on your W2. They show on a 1099-B that is issued to by the institution holding the shares. You show the gains and losses on Schedule D of the federal tax form.

You do not pay ordinary income tax on the capital gains (difference between the sales price and the purchase price).

Some info from the IRS website http://www.irs.gov/newsroom/article/0,,id=106799,00.html.

Here are a few tax facts about capital gains and losses:
  • Capital gains and losses are reported on Schedule D, Capital Gains and Losses, and then transferred to line 13 of Form 1040.

  • Capital gains and losses are classified as long-term or short-term, depending on how long you hold the property before you sell it. If you hold it more than one year, your capital gain or loss is long-term. If you hold it one year or less, your capital gain or loss is short-term.

  • Net capital gain is the amount by which your net long-term capital gain is more than your net short-term capital loss.

  • The tax rates that apply to net capital gain are generally lower than the tax rates that apply to other income and are called the maximum capital gains rates. For 2006, the maximum capital gains rates are 5%, 15%, 25% or 28%.

  • If your capital losses exceed your capital gains, the excess is subtracted from other income on your tax return, up to an annual limit of $3,000 ($1,500 if you are married filing separately).
 

25yrvet

Well-Known Member
I would like to thank the above posters for politely correcting me and apologize for posting info that wasn't very clear.
 
J

Just another UPSer

Guest
Stock sales do not show on your W2. They show on a 1099-B that is issued to by the institution holding the shares. You show the gains and losses on Schedule D of the federal tax form.

You do not pay ordinary income tax on the capital gains (difference between the sales price and the purchase price).

To be honest I have never sold any of the discounted stock that I have purchased. I did work in payroll and loaded special payroll runs for discounted stock per corp directive. Most of these were because they did not meet the two year old test per the IRS. Go out to the IRS website and search for discounted employee stock and you will see the following:

I purchased stock from my employer under an employee stock purchase plan. Now I have received a Form 1099-B from selling it. How do I report this?

If the special holding period requirements described below are met, the sale of stock is treated generally as capital gain or loss. However, you may have income reportable as wages on Form 1040 if:

The option price of the stock was below the stock's fair market value at the time the option was granted, or
You did not meet either or both of the holding period requirement.

The holding period requirements are that you must hold the stock for more than 2 years from the time the option is granted to you and for more than 1 year from when the stock was transferred to you. If you do not meet either or both of these holding period requirements at the time you sell the stock, there is a disqualifying disposition of the stock. The compensation income wages that you should report in the year of the disqualifying disposition is the excess of the fair market value of the stock on the date the stock was transferred to you less the amount paid for the shares. Then increase your basis in the stock by the amount of the ordinary income before calculating your capital gain or loss.

If the holding period requirements are met, but the option exercise price is below the fair market value of the stock at the time the option was granted, you report the discount as compensation income (wages) when you sell the stock. Generally, this compensation income is the lesser of the excess of the fair market value of the stock on the date of the disposition less the exercise price OR the excess of the fair market value of the stock at the time the option was granted less the exercise price.

If the holding period requirements are met and your gain is more than the amount you report as compensation income, the remainder is a capital gain reported on Form 1040, Schedule D (PDF). If you sell the stock for less than the amount you paid for it, your loss is a capital loss, and you do not have ordinary income.

For more information, refer to Publication 525,Taxable and Nontaxable Income, and Publication 551,Basis of Assets.
 
Top