Stock options get messy for small teams with overseas employees
A -style plan is causing tax problems when applied to 6 employees in the UK, Germany, Singapore, India, Australia, and Brazil. Possible fixes include , , growth shares, or switching everyone to non-qualified stock and leaving employees to handle the tax cost.
The hard part is that US lawyers, UK lawyers, and an employer of record are giving different advice. The central issue is that equity pay for international employees depends on each country’s tax, legal, and employment rules.
Key points
- A -style plan may create tax problems outside the US.
- The countries named are the UK, Germany, Singapore, India, Australia, and Brazil.
- Possible alternatives include , , growth shares, and non-qualified stock .
- Different advisers may give conflicting answers on international equity pay.
- Small remote companies should check local tax impact before promising equity to overseas employees.