Company: NSP
Filing Date: 2025-04-15
Form Type: DEF 14A
Source: 0001000753-25-000013
Chunk: 85

Company: INSPERITY, INC.
Filing Date: 2025-04-15
Form: DEF 14A
Chunk 85
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 minus the option price. Any gain in excess of that amount is capital gain, while any loss recognized will be a capital loss.

For nonqualified stock options, the Company is generally entitled to a federal income tax deduction in an amount equal to the ordinary income realized by the participant.

#### Restricted Stoc

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A participant acquiring restricted stock will generally recognize ordinary income equal to the fair market value of the shares on the vesting date, less any amount paid, if any, by the participant. Under Section 83(b) of the Internal Revenue Code, a participant may elect to include in ordinary income at the time restricted stock is first issued, the excess of the fair market value of the stock at the time of issuance over the amount paid, if any, by the participant. In this event, any subsequent change in the value of the shares will be recognized for tax purposes as capital gain or loss upon disposition of the shares. A participant makes a Section 83(b) election by filing the election with the IRS no later than 30 days after the restricted stock is transferred to the participant. With a Section 83(b) election, the participant will not be entitled to any loss deduction if the shares with respect to which a Section 83(b) election was made are later forfeited. Absent a Section 83(b) election, any cash dividends or other distributions paid with respect to the restricted stock prior to the lapse of the restrictions or risk of forfeiture will be included in the participant’s ordinary income as compensation at the time of receipt and subsequent appreciation or depreciation will be recognized as capital gain or loss. The Company will generally be entitled to a deduction for federal income tax purposes at the same time and in the same amount that a participant recognizes ordinary income from restricted stock under the Plan.

Stock Appreciation Rights, Restricted Stock Units, Phantom Stock and Other Stock-Based Awards

Generally, a participant will not recognize any taxable income upon the grant of SARs, RSUs, phantom stock or other stock-based awards. At the time the participant receives the payment for the SAR, RSU, phantom stock or other stock-based awards, the fair market value of shares or the amount of any cash received in payment for such awards generally is taxable compensation to the participant taxed as ordinary income. The Company or one of its subsidiaries will generally be entitled to a deduction for federal income tax purposes at the same time and in the same amount that a participant recognizes ordinary income from SARs, RSUs, phantom stock or other stock-based awards under the Plan.

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