GEO INSIGHTS

As the modern workforce becomes increasingly mobile, companies face a new frontier of complexity: payroll tax compliance for employees who cross borders, whether temporarily or permanently. Organizations that proactively address these challenges are better equipped to reduce risk, maintain compliance, and support their global talent effectively. 

Drawing on deep expertise in global mobility and equity compensation, Marlene Zobayan (Rutlen Associates), Andrea Kagan (NVIDIA), and Marianne Friebel (Dolby) shared actionable insights and strategies for navigating the evolving landscape of payroll tax for mobile employees. 

The global mobility ecosystem 
Effective management of payroll tax for mobile employees requires collaboration across a network of internal and external stakeholders: 

• HR and mobility teams: Track employee movements, manage assignments, and coordinate with payroll. 
• Payroll providers: Calculate and remit taxes in multiple jurisdictions, ensuring timely and accurate payments. 
• Tax advisors: Interpret complex, ever-changing tax laws and provide guidance on compliance. 
• Legal and compliance teams: Monitor regulatory changes and mitigate risk. 
• Technology providers: Offer tracking, reporting, and automation tools for mobile workforce data. 
• Employees: Must be educated on their responsibilities and the impact of mobility on their compensation. 

The challenge is threefold: first, accurately tracking employee movements and assignments; second, managing the tax obligations; third, ensuring seamless data flow and communication among all parties. As Marianne Friebel emphasized, ‘Visibility and real-time data are critical for staying ahead of compliance risks.’ 

Key challenges for employers 
Managing payroll tax for a mobile workforce presents unique hurdles: 

1. Complex, fragmented tax regulations: Each jurisdiction has its own rules, thresholds, and reporting requirements. 
2. Tracking employee location and days worked: Even short business trips can trigger tax obligations. 
3. Data accuracy and integration: Disparate systems and manual processes increase the risk of errors. 
4. Employee communication and education: Employees may be unaware of the tax implications of their mobility. 
5. Cost management: Unexpected tax liabilities can impact both the company and the employee. 

Practical steps to payroll tax compliance 
The panelists agreed: success requires a blend of clear processes, and cross-functional collaboration. Here’s how leading companies are tackling the challenge: 

• Centralize data collection: Use technology to track employee movements and assignments in real time. 
• Establish clear policies: Define mobility, tax, and reporting policies that are communicated to all stakeholders. 
• Engage experienced partners: Tax advisors and technology providers can help interpret regulations, share best practices from their client base, leverage existing systems  and if appropriate, automate compliance. 
• Conduct regular training: Equip HR, payroll, and employees with up-to-date knowledge on mobility tax issues. 
• Monitor and audit: Implement regular reviews to identify gaps and ensure ongoing compliance. 

Andrea Kagan highlighted the importance of ‘building strong bridges between HR, payroll, and tax teams, so everyone is working from the same playbook’. 

Embracing mobility for competitive advantage 
Global mobility is no longer a niche concern—it’s a strategic imperative for companies seeking to attract, retain, and deploy top talent worldwide. By investing in integrated solutions, expert partnerships, and clear communication, organizations can turn mobility compliance from a risk into a competitive advantage. 

As the workforce becomes more mobile, proactive management of payroll tax is essential—not just for avoiding penalties, but for supporting business growth and employee satisfaction. 

For more information or to arrange a consultation, contact Marlene, Andrea, or Marianne directly. 

Watch a recording of the webcast on GEOlearn: WATCH THE WEBCAST

In today's rapidly evolving business landscape, strategic alliances are no longer optional—they're essential for navigating complexity and fostering innovation. Companies that embrace collaborative ecosystems are better positioned to unlock new opportunities, mitigate risks, and achieve sustainable growth in the competitive equity management space.

With their combined decades of experience in the equity compensation landscape, Hannah McCullough, Justin James, and Dan Mullen from insightsoftware offered valuable insights and practical strategies for companies striving to amplify their equity programs and stay ahead in a dynamic regulatory environment.

The equity management ecosystem: key players

Successful equity management relies on a collaborative network of service providers, each offering specialist expertise:

• Software providers: Companies like insightsoftware deliver technology for reporting, data management, and automation. Certent Equity Management from insightsoftware simplifies equity administration and enhances accuracy.
• Administrative service providers: handle day-to-day operations like grant administration and stock settlements.
• Brokerage and participant servicing providers: facilitate transactions and provide employee education and support.
• HR partners: manage employee data and integrate equity compensation into broader benefits programs.
• Transfer agents: maintain stock ownership records and ensure compliance.
• Tax support providers: offer expertise in navigating complex tax regulations.

The challenge is two-fold: firstly, selecting the right vendors for each of these roles, and secondly, ensuring these players work seamlessly together to share data and coordinate processes. As Dan Mullen noted, issuers should consider "best in breed, best in class solutions" that integrate and deliver seamless experiences.

Key challenges for issuing companies

Managing equity plans is a high-stakes responsibility for issuers. They must coordinate multiple providers, each with their own systems, processes, and data formats. The main challenges include:

1. Compliance and regulatory complexity
2. Employee education and engagement
3. Managing global equity plans
4. Data accuracy, privacy, and record-keeping.

Actionable steps to successful strategic partnership integration

The webcast highlighted that overcoming these challenges requires issuers to embrace technology and cultivate strategic partnerships. Cutting-edge solutions, built for automation and seamless integration across the entire equity management ecosystem, are crucial.

When solutions work in harmony, they enable more efficient transactions and user experiences, ultimately driving optimal outcomes for both issuers and their employees.

Here’s how to identify and maintain successful partnerships:

• Define clear goals from the outset: outline specific objectives for equity management.
• Assess current capabilities: identify gaps that partnerships can address.
• Research potential partners: look for proven companies with strong reputations.
• Evaluate integration capabilities: ensure seamless integration with existing systems (insightsoftware’s Certent Equity Management is designed to do just this).
• Establish clear communication: foster open communication and regular check-ins.
• Monitor performance and provide feedback: continuously assess and adjust for the best outcomes.

Embracing partnership for equity management success

Modern equity management is inherently complex, making strategic partnerships essential in overcoming its challenges. By leveraging integrated solutions like Certent Equity Management, and fostering strong relationships with key service providers, issuer companies can streamline equity plan administration, ensure compliance, enhance employee engagement, and enjoy the impact of equity compensation as a tool for attracting, retaining, and motivating talent.

The key takeaway is clear: a collaborative, integrated approach is no longer a luxury—it is a necessity for success in today’s dynamic equity management landscape. For more information or to arrange a demo of Certent Equity Management, contact Justin James, Hannah McCullough, or Dan Mullen directly.

Watch a recording of the webcast on GEOlearn: HERE.

Starting January 2025, Israeli companies offering equity compensation will face significant changes in reporting requirements due to updates from the Israel Tax Authority (ITA), including a mandatory shift to an online reporting system. Companies will need to submit quarterly and annual reports with detailed information about equity awards, employee status, and tax withholdings, as well as complete comprehensive questionnaires about their plans. Non-compliance with these new requirements could jeopardize employees' tax benefits, lead to audits, or result in financial penalties, making early preparation and expert guidance essential for ensuring compliance.

Aspo Plc is introducing a new long-term share-based incentive plan for key employees, aligning their interests with shareholders by linking rewards to performance metrics such as total shareholder return and sustainability targets. The previous long-term incentive plans for 2023–2025 and 2024–2026 are being terminated, and the new plan will run from 2025 to 2027, with rewards delivered in spring 2028. Additionally, part of the short-term remuneration for key employees, including the CEO and executive committee members, will be paid in shares, with up to 320,000 shares allocated under this plan by spring 2026.

In 2025, employee ownership (EO) is expected to expand globally, with the United Nations declaring it the International Year of Cooperatives, emphasizing the role of worker cooperatives in sustainable development. Government policies at the local and national levels will increasingly support EO as a strategy for economic resilience, with new legislation and funding mechanisms promoting transitions to employee-owned businesses. Additionally, private equity, diversified capital providers, and rising trust conversions will contribute to a broader adoption of EO models, helping workers build wealth, preserve business legacies, and strengthen local economies.

Employee equity compensation is expanding beyond executives to include employees at all levels, with companies offering more flexible equity options such as performance units and restricted stock. However, increased regulatory complexity, particularly around 10b5-1 trading plans and SEC rules, requires careful planning and compliance. As equity compensation evolves, companies are encouraged to seek external expertise to navigate these changes effectively.

Barclays is granting shares to around 90,000 employees for the first time, offering stock awards valued at £500 each as it prepares to announce its 2024 annual results. The initiative, costing between £45m-£50m, aligns with CEO CS Venkatakrishnan's belief in promoting equity ownership to stimulate markets. The bank is also expected to report progress in its investment banking business, while Venkatakrishnan's own pay package will be adjusted, with bonuses potentially pushing his total compensation above £14m.

A proposal has been made to allow start-ups to defer the tax point for employee share schemes (ESS), aiming to ease the tax burden on employees who may struggle with illiquid shares. The deferral option is not a tax concession, as employees will be taxed on any further appreciation in share value, and employers won’t receive tax deductions until the deferred taxing date. Start-ups are encouraged to provide feedback by March 15, 2025, as this is a rare opportunity to influence the proposal, which may be elective and apply to unlisted businesses with a turnover under NZ$15 million.

Equinor ASA has initiated a share buy-back program from 14 February 2025 to 15 January 2026 to support its employee share-based incentive plans, with a total purchase amount of NOK 1,992,000,000 and a maximum of 19,080,000 shares to be acquired. The buy-back is divided into two periods, with up to 8,040,000 shares purchased before 15 May 2025 under an existing authorization, while the remaining 11,040,000 shares require new approval from the 2025 annual general meeting. The purchases, conducted on the Oslo Stock Exchange, comply with Norwegian and EU regulations, ensuring adherence to safe harbour conditions.