Over 20 million Americans receive some form of equity compensation, and that number most likely includes some of your top talent. The equity awards you offer can be one of the most valuable benefits in the workplace, and tax season is an important time to drive this value home. Your participants will be looking for ways to satisfy their tax obligations and keep as much of their equity awards as they can to build wealth and secure their financial future. How are you meeting them in the moment?
One way is to offer mindful support when it comes to navigating the complex tangle of managing the impact equity awards can have on the overall bite of taxes. Of course, your company likely is not in the business of offering tax advice, but as we enter the home stretch of tax season, there is a lot you can do to help your top talent understand how taxes intersect with equity. Here are three key steps.
|#1: Emphasize information and education
Education and communication are critical: We've found that while participants increasingly perceive equity compensation as valuable, they want more help. Less than half (46%) say they know how to reach someone to ask questions and just 39% say they understand how taxes might affect their stock plan benefits. No wonder over 60% said they are likely to attend an education session on investing, stock plan benefits, or retirement.
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