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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

  • work Practice Area

    ERISA

Date & Time
  • event Date

    Wednesday, November 16, 2022

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE webinar will provide employee benefits counsel with an overview of the legal and tax issues for equity grants to professional employer organization (PEO) workers. The panel will discuss essential plan design and governance issues, critical tax implications and restrictions, challenges for foreign employees, and implementation considerations.

Faculty

Barbara Klementz
Partner
Baker Mckenzie, LLP

Ms. Klementz is the chair of Baker McKenzie’s North American Compensation Practice. She has practiced in the area of global equity and executive compensation for over 20 years. Ms. Klementz has authored several articles on global equity issues for the BNA Executive Compensation Journal, Journal of Corporate Taxation and San Francisco and Los Angeles Daily Journal, among others, and she is the author of a blog on global equity related topics called the Global Equity Equation. She is also a frequent speaker on a variety of global equity topics. Ms. Klementz is recognized as a ranked practitioner by Chambers USA. Chambers states that she "consistently delivers top-notch assistance and work product, and is a true expert in the field." She is admitted to private practice in California and Düsseldorf, Germany.

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Marlene Zobayan
Partner
Rutlen Associates, LLC

Ms. Zobayan has over twenty years of international tax and benefits experience, including global equity plans, mobile employee taxation, global compensation and benefits. She provides a range of services to her clients, including global equity plan design, tax reviews and tax optimization, assistance with local approvals and filings, communications, and designing administrative processes. She is a regular speaker and author on global stock plan and rewards issues. Prior to joining Rutlen Associates, she was the practice leader on the West Coast for Deloitte Tax's Global Rewards group and managed their news alerts for global equity plan changes.

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Description

Multijurisdictional companies, or those seeking to expand into new jurisdictions, typically turn to PEOs to engage local workers. At times, these companies may consider offering equity grants to PEO employees. However, such arrangements involve significant risks, including labor and employment law risks, tax implications, and other risks directly impacting a company's compensation and equity program.

A PEO is a third-party employer that hires workers as its direct employees to administer payroll and benefits, while those workers provide services to another company. If a company grants equity to these PEO employees, it will be subject to specific tax and legal implications and challenges because granting equity to PEO workers can be significantly different from granting it to direct employees or independent contractors.

In addition, companies preparing to grant equity in a new jurisdiction must confirm the grantee’s status under local law which can profoundly impact equity plan compliance as well as the local compliance obligations and tasks that the PEO is willing to undertake.

Listen as our panel discusses best practices for structuring equity grants to PEO workers, plan design and governance issues, critical tax implications and restrictions, challenges for foreign employees, and implementation considerations.

Outline

  1. Plan design and governance issues
  2. Tax obligations and restrictions
  3. Key cross-border considerations
  4. Regulatory considerations
  5. Best practices in structuring equity grants to PEO workers

Benefits

The panel will review these and other high priority issues:

  • What plan design and governance impact equity grants to PEO employees?
  • What are the essential legal considerations for granting equity to PEO workers?
  • What are the tax implications and pitfalls to avoid for the company and PEO workers?
  • What are the labor and employment law implications?
  • What are best practices in structuring equity grants for counsel and companies?