When employees make a move: Taxation on equity incentive plans

Are you on track with tracking?

More than 340 Tax, HR, and Equity professionals responded to the 2022 Equity Administration Survey, developed jointly by the National Association of Stock Plan Professionals and Deloitte Tax LLP, focusing on global equity plan administration and its impact to their companies’ reward system. Long-term incentive programs have been around for a while to compensate and retain talent. However, the new “boundaryless” work environment and the complexities that it brings are throwing many organizations for a loop. As a result, a growing number of companies are outsourcing plan administration taxation to help ensure compliance. Below are some of the top insights around mobile employee tracking and the future of mobility data.

How do companies stack up?

More than 80% of respondents track the international assignee and permanent transfer population, which has become widespread practice. Respondents indicated in the United States, companies are more likely to track state-to-state employee moves compared to remote and hybrid workers. For those companies still looking to develop an effective tracking approach and framework, a third-party adviser can help.

Who is calculating the tax?

No matter the size of your long-term incentive program, having a dedicated team with the right policies and procedures in place is essential to keeping up with the ever-growing demand for remote and hybrid work flexibility. When it comes to stock plans and the mobile employee population, key executives are often a primary focus. To mitigate exposure to risk, external tax support is one option that many companies are considering.


Get in touch

For a custom view of the 2022 survey results or to participate in future surveys, presented by NASPP and Deloitte Tax LLP, please contact one of the professionals below.

Meridith Fronza
Deloitte Tax LLP
+1 312 486 2589

Miriam Krawiec
Senior Manager
Deloitte Tax LLP
+1 848 261 9836

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