Equity-based Compensation

Equity-based Compensation

Keeping on top of equity-based compensation for both employees and employers.

Keeping on top of equity-based compensation for both employees and employers.

Implementing a compensation program that’s both competitive and compliant is a real challenge in today’s dynamic labor market. Now, more than ever, your business must offer a competitive compensation model that attracts and retains the best talents. In addition, your business must be able to comply with different regulatory, legal and tax rules across multiple jurisdictions.

Recognizing the risks of non-compliance
The risks of non-compliance for equity-based compensation programs have become increasingly complex and costly – involving fines, penalties and reputational risk. A frequent target for many taxing jurisdictions, equity-based compensation is subject to increasingly more stringent withholding rules and processing challenges.

Technology and expertise that puts you in the driver’s seat
Aided by the latest technology, we deliver end-to-end services to help you become and stay competitive and compliant: From defining the most suitable incentive scheme for your company including planning its design, implementation and monitoring compliance risks at all stages to assessing your reporting and payroll setup.

Global Challenges
Using KPMG’s Global Equity Tracker (GET), our experts can help you to accurately calculate withholding scenarios in real time across numerous tax jurisdictions. Frequent changes in payroll reporting and withholding tax requirements also need to be addressed. These are all taken into consideration in GET.

Calculating the withholding and complying with reporting requirements for mobile employees across multiple jurisdictions is complicated, time-consuming and expensive. It requires specialized global equity tax knowledge and understanding of the various compliance requirements in each country.

KPMG’s expertise

  • Advising on the design of a compensation and/or equity plan that meets your business needs
  • Building the right incentive drivers – knowing and understanding the varied options for cash- and non-cash-based compensation and equity schemes to flexible benefits
  • Assessing your existing tax reporting and payroll setup and/or equity plans and whether they still meet your business needs and goals
  • Providing a full tax and legal review, risk assessment, individual country studies and process planning
  • Supporting the implementation of a new compensation or/and equity plan; defining the correct accounting treatment and payroll as well as drafting tax and legal communication for employees
  • Optimizing administrative procedures relating to equity-based compensation
  • Conducting a post-implementation and sustainability review to monitor payment and share delivery processes, compliance and tracking tax and reporting obligations for mobile employees
  • Implementing comprehensive global scope and total automation to cover any type of incentive arrangement in every jurisdiction you require using KPMG’s Global Equity Tracker

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