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How to Set Up Monthly ESPP (Employee Stock Purchase Plan)?

Monthly ESPP lets an employee contribute a percentage of their basic pay to purchase company stock. Here's how to enable it in the employee profile and how the deduction appears in payroll.

Written by Nicholas

What is Monthly ESPP?

Monthly ESPP (Employee Stock Purchase Plan) lets an employee contribute a percentage of their basic pay: from 1% to 100%; to purchase company stock. The contribution is deducted automatically each month when you process payroll.

How to set up Monthly ESPP?

  1. Go to Profiles > Employee Listing and open the employee's profile.

  2. Go to Current Job Details.

  3. Enable Monthly ESPP and set the contribution percentage (1–100% of basic pay).

  4. Save the profile.

How it appears in payroll?

When you process payroll, the ESPP amount is calculated from the employee's basic pay and shown as a deduction under Additional Pay Items. You don't need to key it in manually each month.

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