April 29, 2024
The Pay & Proxy Podcast: T+1 Settlement & Equity Award Tax Withholding
The new T+1 settlement timeframe is only about a month away. As Dave recently reminded everyone on TheCorproateCounsel.net, it will be implemented over the Memorial Day holiday weekend. The new settlement cycle may raise some issues with your equity award withholdings. In the latest 14-minute episode of “The Pay & Proxy Podcast,” Meredith interviewed Troutman Pepper’s Sheri Adler about what we need to know & do. They discussed:
1. When tax becomes due for common types of equity awards
2. Withholding methods for employers
3. Employer responsibilities for depositing federal income tax withheld
4. Potential penalties for a failure to timely deposit
5. New timing for depositing tax following the shift to T+1 settlement
6. Actions & considerations before the May 28th effective date of T+1 settlement
If you have an executive compensation topic that would be good for a podcast, reach out to Meredith! She’s at mervine@ccrcorp.com.
– Liz Dunshee