Get on the Ball with Tax Mobility

Transcription

1 Get on the Ball with Tax Mobility Session B1: May 24, :45 2:00 p.m. Kathleen Martell, Administrator, Executive Compensation Programs, Ball Corporation Matt Connor, Sr. Relationship Manager, Solium Darren Smith, Senior Associate, Solium David Milne, Product Manager, Solium

2 CPE Credits Continuing Professional Education (CPE) Credits are available! You will receive one (1) CPE credit after attending this session. You must attend the entire session to be eligible. In order to earn the available credit(s) for this session, you must see the room monitor before and after the session to get checked-in and out of the session. Electronic certificates will be ed to you a few weeks after the conference with the cumulative number of credits earned Solium is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Web site:

3 The Dilemma: Participants Won t Standstill The struggle is real participants are all over the place Who do you need to track Global On Assignment Expatriates Global Localized Global Business Travelers Local State to State Why Jurisdictions want their share of tax due apportionment How Where in the world are they? Calculations - Rule Sets and Positions

4 Poll Question How do you manage tax withholding for your mobile employees today? Manual spreadsheet Third party post transactions Third party before settlement of transaction Nothing Help me!

5 The problem: tax for mobile participants May 1, 2010 Calgary, AB Apr 1, 2012 Tempe, AZ Oct 1, options granted Vest Vest Vest Jan 1, 2014 Exercise At time of transaction, equity awards may be subject to taxes in multiple jurisdictions

6 The Solution: Global Tax Mobility What is it? An optional module A tool for automating tax withholding and reporting when employees move between jurisdictions over the life of a grant. A tool that is evolving work in progress What we want to talk about today: What Global Tax Mobility does and how it can make your life easier What you need it to do priorities for roadmap

7 Tax Mobility module - What does it do? The tax mobility module withholds taxes at the time of a taxable event, based on a combination of: Where the participant lived, over the life of an award The tax rules in those jurisdictions

8 Tranche-Level Taxation Grant: Oct 1, 2010 Grant: 300 options Grant Price $1 Calgary Apr 1, 2012 Move to Tempe Taxable Compensation Tranche units Tranche 1: $100 Tranche units Tranche 2: $100 Tranche units Tranche 3: $100 Total: $300 Oct 1, 2011 Oct 1, 2012 Oct 1, 2013 Jan 1, 2014 $2

9 Tranche Level Taxation May 1, 2010 Calgary, AB Apr 1, 2012 Tempe, AZ Oct 1, options granted Vest Vest Vest Jan 1, 2014 Exercise

10 Tracking mobility Taxation Profile tracks time in jurisdictions

11 Tax rules per jurisdiction Tax rulesets tell the tax engine what rules to apply in a jurisdiction

12 Pro-ration rules Pro-ration rules determine how to handle tax a jurisdiction when a participant has moved over the life of a grant

13 Pro-ration rule options

14 Days Allocated

15 Tax Treaties Can be configured between countries, or between states/provinces*

16 What you see - reporting Taxes calculated at tranche level for each applicable jurisdiction Unique row for each jurisdiction, per tranche

17 What your employees see Users see detailed, per tranche breakdown, plus summary view

18 Questions?

19 Additional Resources Need more? Online Learning Shareworks Certification Shareworks Workshops Convenient and completely selfdirected, our online lessons provide you with industry context and the how-to in Shareworks. Shareworks Certification is a great way to quantify your knowledge, develop key technical skills and prove yourself invaluable to your company s administration team. Roll-up your sleeves and join us all year round, either in person or online, for hands-on workshops on a variety of Shareworks topics. Visit solium.com/education

20 Contact Us Kathleen Martell Administrator, Executive Compensation Programs Ball Corporation Matt Connor Sr. Relationship Manager Solium Darren Smith Senior Associate Solium David Milne Product Manager Solium