• 1000

In today's dynamic labour market, setting up employee incentive schemes that are competitive and also comply with legal regulations is a real challenge. Now more than ever, companies need to demonstrate flexibility and offer a competitive and attractive compensation model to attract and retain the best talent. In addition, companies need to take into account regulatory, legal and tax rules as well as potential developments in different jurisdictions.

Non-compliance with legal requirements: Identifying the risks

The consequences of non-compliance with the various regulations related to employee stock ownership programmes are increasingly complex and expensive - they can lead to fines, penalties and reputational damage. Many tax authorities are scrutinising employee incentive schemes, resulting in increasingly stringent withholding tax rules and settlement challenges.

With this technology you are in control

Supported by the latest technology, we provide services at every stage of implementation to enable you to be and remain competitive, but also legally compliant: We determine the best possible participation programme for your company, plan its design and implementation as well as monitoring compliance risks at all stages, and evaluate your existing processes for reporting and payroll.

Global challenges

On a global level, we support you in accurately calculating withholding taxes to be withheld in a variety of countries in real time. Each country in which your company operates has a different legal system to consider, as well as frequent changes in payroll and withholding tax rules. KPMG has developed the Global Equity Tracker (GET) online tool to address these issues.

For mobile employees, calculating and reporting withholding taxes in a variety of countries is complicated, burdensome and expensive. Specialised global employee ownership expertise in each country is essential. We are supported in this task by our IT tool  Global Equity Tracker (GET) .

KPMG's expertise

  • Advise on the selection of a compensation or employee share ownership programme that meets your company's needs.
  • Evaluating your existing compensation/employee share ownership programmes and checking whether they still meet your company's needs and objectives.
  • Determining the right incentives for employees: Knowing the different options in terms of cash compensation as well as share-based and other variable compensation models
  • Conducting a full tax and legal review, risk analysis, individual country studies and process planning
  • Assisting in the implementation of a new compensation/employee share ownership programme, determining the correct accounting treatment and payroll, and drafting tax and legal bulletins for employees.
  • Optimisation of administrative processes related to employee share ownership plans
  • After plan implementation, conduct a sustainability audit to monitor payment and share transfer processes as well as legal and tax compliance, especially for mobile employees
  • Using our Global Equity Tracker tool, a comprehensive global programme can be implemented with full automation for each form of employee participation and for each country involved