Award-Winning Mobility Solutions Simone Van der Schalk, Manager, Expatriate Management, ConocoPhillips (US) L. Dianne Robinson, Sr. Stock Administrator, Google (US) Scott Schapiro, KPMG Principal - Employment Tax (US) Leann Balbona, KPMG Managing Director Global Equity Tax (US)
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Agenda Business Issue Approaches to Resolve 2011 Winner ConocoPhillips 2012 Winner - Google Questions & Answers
Business Issue Where You Operate? Usually have employees on the ground receiving equity
Current Environment Taxing Authorities Need Money Rules on the Books Mobile Employees
WA Non Resident Withholding De Minimis Jurisdictions - Wages As of January 1, 2012 MT ND MA VT ME CA OR MN ID SD WY Click to edit Master text styles NV Second level UT CO Third level AZ Fourth level Fifth NM level NE KS OK IA WI IL MO AR MI IN KY TN OH CT WV SC PA VA NC NY NH RI NJ DE MD DC MS AL GA TX LA FL AK AK Your company logo here. Go to Master Slide to edit HI HI States with de minimis rules or exceptions States without de minimis rules or exceptions States with no withholding provision Source: KPMG LLP International Executive Services
WA Non Resident Withholding De Minimis Jurisdictions Equity Compensation As of January 1, 2012 MT ND MA VT ME CA OR MN ID SD WY Click to edit Master text styles NV Second level UT CO Third level AZ Fourth level Fifth NM level NE KS OK IA WI IL MO AR MI IN KY TN OH CT WV SC PA VA NC NY NH RI NJ DE MD DC MS AL GA TX LA FL AK Your company logo here. Go to Master Slide to edit HI HI States without de minimis rules or exceptions States with no withholding provision Source: KPMG LLP International Executive Services
HR 1864 Bill with congress What it means? What employers should consider?
KPMG LLP Survey Information by Region and Country Click to edit Master text styles Your company logo here. Go to Master Slide to edit Second level Third level Fourth level Fifth level Current or increase in audit activity Europe Americas Belgium Canada Cyprus Costa Rica Germany Honduras Greece Mexico Kazakhstan United States Ireland Norway Asia Portugal China Spain Hong Kong Sweden India Switzerland Japan United Kingdom Korea Africa Malaysia Botswana Singapore Morocco South Africa Australia Source: KPMG Member Firms
How to Address the Issue? What to Consider? Several approaches Organization operations Culture Dispersion of employees Size of impacted population Policy Budget Data
2011 Winner Having that Domestic Feeling International, integrated energy company 30 countries 29,000 employees Awards granted RSU PSU Stock Options Large expatriate population with concentrated locations
Overview of Project 3 parties COP, BofAML and KPMG Automation key New development Modeling for stock options Exercises and lapses process Participant experience Exception processing Payroll processing
Parties Involved Legal IT Tax HR Mobility Travel Employee Finance Equity Payrolls Vendors
Mobility Taxation Process Design BofAML Benefits Online (Employee) Employees can view, model and execute stock option exercises in real-time BofAML Systems (with Mobility Data) Webcall for Stock Options Lapse Batch Processing KPMG GET Data Point KPMG GET Tax Engine Tax rules and positions agreed and updated
Why the Domestic Feeling? Can lead to the opportunity for shorter turnarounds Improved compliance Less administration Fewer touch points Happier employees
Keys to a Successful Implementation ConocoPhillips GEO 2011 Best Technology Solution Project management Clear definition of roles and responsibilities Implementation strategy Experience and flexibility in design Custom requirements Realistic timeline KPMG FEM 2011 Most Innovative Use of Technology
2012 Winner: gmobility 50,000+ employees Majority receive equity: GSUs (RSUs), stock options 65+ countries 1,700+ in gmobility Automated solution for income and tax apportionment from equity transactions within settlement
Meet gmobility Captures location history from HR system (ghr) Employee facing tool to verify data and citizenship Country-specific rules in PwC sharetax All equity transactions and location history feed from Morgan Stanley Smith Barney (MSSB) to PwC sharetax Payroll updated with apportioned income and taxes Taxes updated at broker within settlement (T+3)
gmobility Solution Process gmob Googler gmobility database GSU vest or NQ exercise Non-US/CAN transactions back to MSSB Report to non-us/can Payrolls month end MSSB database PwC ShareTax US/CAN transactions only US/CAN Payroll
gmobility: Key stakeholders Google Stock Admin team Google Payroll Google Systems Technology PwC Morgan Stanley Smith Barney (MSSB)
gmobility: Value Positive employee experience: Ensuring apportionment calculations completed within settlement Scalability and efficiency: Increasing mobile population Compliance: Multiple tax jurisdictions Streamlined process without manual intervention Mitigate risk: Reduced risk of noncompliance
gmobility: Lessons learned Maintenance: Tax rules, systems upgrades (internal and external with vendors) Ongoing communications with vendors and business partners Employee communications: Office hours, tech talks, posting questions page, FAQs, tax statements Calendar by tax year deadlines
What s Next? Business Travelers C Suite Expatriates Commuters Perm or Local Movers Project Workers
Questions? Thank You!