CFOs should stop viewing compensation purely as a cost and instead treat it as a strategic investment aligned with business goals, using data-driven approaches that balance base pay, variable pay, equity, and benefits. A comprehensive compensation strategy helps retain top performers, manage underperformers, and attract talent even in uncertain markets, avoiding the costly turnover and inefficiencies of reactive, boom-and-bust pay tactics. By leveraging market intelligence and flexible incentives, companies can maximize the value of every compensation dollar and build resilience through economic cycles.

This helpsheet explains how Capital Gains Tax (CGT) applies to shares acquired through employee share schemes, including SIPs, SAYE, CSOPs, EMIs, and unapproved schemes. It outlines how to calculate the capital gains cost of shares, available reliefs (such as transfers to ISAs, pensions, or SIPs), and specific rules for restricted or same-day share acquisitions. It also details special provisions for Employee Shareholder Shares (ESS), including lifetime gain limits, and provides guidance on elections, claims, and compliance requirements.

UK businesses that grant shares or other securities to employees, directors, or officer holders must submit an Employment Related Securities (ERS) annual return to HMRC by July 6, covering all equity-related activity from April 6, 2024, to April 5, 2025—even if no activity occurred. One-off awards still count as a “scheme” and must be registered online, with companies required to self-certify tax-favoured plans and retain screenshots of the entire reporting process for their records. Penalties apply for late filings or inaccurate information, and awards to Employer of Record employees must typically be reported by the Employer of Record.

When lodging your tax return using myTax, you must report any discounts received on employee share scheme (ESS) interests, whether acquired directly or by your associates, and whether from Australian or foreign employers. Depending on whether your ESS interests fall under a taxed-upfront or deferral scheme, different taxing points apply, and you may be eligible for certain reductions or exemptions, especially for start-up company interests or if you are a temporary resident. To complete this section, you'll need an Employee Share Scheme statement from each employer, check any pre-filled data, manually add any missing details, and myTax will automatically calculate applicable adjustments.

The UK government is launching PISCES, a new regulated marketplace allowing periodic secondary trading of private company shares, primarily for sophisticated investors, employees, and select insiders. New legislation will enable employee stock options under EMI and CSOP schemes to be exercised during PISCES trading events without losing their tax benefits, addressing liquidity challenges in private markets. PISCES also offers advantages like Stamp Duty exemptions, lighter disclosure requirements, and greater flexibility, potentially providing private companies with a new pathway toward liquidity and eventual public listing.

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

The Canadian government has deferred the proposed increase in the capital gains inclusion rate and corresponding reduction in the employee stock option deduction from June 2024 to January 2026. As a result, for 2025, qualifying employee stock options will still benefit from the current one-half deduction rate when calculating income tax withholding. Additionally, the Canada Revenue Agency has provided temporary relief from late-filing penalties for certain information returns, while Revenu Québec will maintain the one-half deduction but has not announced similar penalty relief.

As of April 1, 2025, employers can choose to tax employee share and option benefits either at the time of acquisition (as was the case before 2024) or defer taxation to a later statutory moment (as per the 2024 regime). If opting for deferred taxation, employers must notify tax authorities within strict deadlines, or the benefits will be taxed immediately upon acquisition. Importantly, this new rule applies retroactively to shares and options acquired from January 1, 2024, and employers must declare their intent to defer taxation by May 30, 2025, or the income will be taxed in May 2025.