- Solution Strategies
- Equity Management
- Energy Management
- Human Resources
- Licensing & Product Ops
Employee Mobility and State Tax Withholding
Some states, notably California and New York, are enforcing laws which require individuals to pay state income tax on deferred compensation for the portion of time the individual worked in the state when that compensation was earned. Due to state budget deficits, we expect more states to focus on the enforcement of withholding and reporting requirements related to compensation from stock options and awards.
Employers are required to report income and withhold taxes based on these state laws. Today most companies are not in full compliance with state laws and are ill equipped to deal with the changes to their equity compensation systems.
Our equity team is working with several clients to ease the administrative burden to the stock administrators and downstream systems that provide data to the states. Our solutions incorporate the following:
Our solutions are driven by several guiding principles: