The Securities and Exchange Commission (SEC) has introduced a new rule that significantly impacts the settlement process for popular equity plans offered to employees, such as stock-settled Restricted Stock Units (RSUs) subject to tax withholding, and stock option/stock appreciation right exercises involving same-day sales. Effective May 28, 2024, the settlement cycle will be shortened from two business days after the transaction date (T+2) to one (T+1).
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Author Mandy Zeman, CPA
Mandy is a Senior Manager in GTN’s Pacific region and has been with GTN since 2013. She has over 20 years of experience in expatriate US income tax consulting and compliance, including tax equalization, cost projection, and related expatriate and program planning. Mandy has an in-depth knowledge of complex mobility tax issues, extensive experience with the unique tax withholding and reporting challenges facing companies with global equity plans, and provides thoughtful, tailored solutions to each client. +1.650.331.0118 | mzeman@gtn.com
Infographic: Four Steps to Managing Mobile Equity Challenges
on January 27, 2022
| By Mandy Zeman, CPA
|
Global Mobility Program,
Mobility Tax,
Mobile Equity,
Equity Compensation Program
Technology, growth in remote work, and global opportunities are empowering more and more people to take jobs across international and domestic borders. But as you award your cross-border employees with equity-based compensation, your tax compliance risk may be skyrocketing.
Luckily there are ways to navigate these mobile equity challenges while keeping your company and employees tax compliant.
It’s important for global companies of all sizes to be aware of tax obligations whenever an employee crosses a border. Remembering to check into possible tax exposure is critical to ensuring your employees are informed and to allow your company to mitigate potential risks. There are three common mobile employment scenarios that your company should understand and be prepared to handle.
