The provision of long-term incentives, such as stock options and other equity compensation, to employees who work in multiple locations has always been challenging. Because not all jurisdictions treat equity income in the same manner for tax purposes, companies can face many uncertainties when trying to understand their reporting and withholding obligations. Mobile employees can face complex tax filings and even double taxation.
Looking for something specific?
Infographic: Four Steps to Managing Mobile Equity Challenges
on January 27, 2022
| By Mandy Zeman
|
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.
Tips for Aligning Equity, HR, and Payroll Teams to Manage Your Equity Compensation Program
on October 1, 2021
| By Tara Hagen
|
Mobile Workforce,
Global Payroll,
mobility program,
mobile equity,
equity compensation program
Managing a mobile workforce, especially at a time when many employees are remote, can be complicated. Throw in a number of those employees receiving equity or other long-term incentive compensation and the reporting and withholding challenges likely rise to the top of your “pressing issues” list. Making sure all departments align and collaborate is essential in your efforts to manage a successful equity compensation program.
You likely know by now that employees who receive equity-based compensation, and who relocate—either domestically or internationally—during the life of the award, create tax withholding and reporting obligations. Still, when it comes to equity reporting and withholding, companies do not always act to address the risk with their mobile workforce. Often this comes down to a lack of staffing, information, or technology. So how do you move from the stage of recognizing the problem to finding and implementing a solution?
Attracting and retaining skilled workers in today’s tight labor market takes more than a competitive salary. Many companies find they can meet their employment needs and their employees’ incentive preferences by offering a portion of their compensation as equity.
