Rutlen Associated delivers workable solutions for multi-disciplinary problems.

This portfolio of success stories will give you a good sense of the kind of problems we work with, how we approach them and the kind of results we get.

• Risk Management for Mobile Employees with Equity Compensation
  Understanding your tax and legal risks, prioritizing your risks, and developing practical solutions to manage the process
• Getting Control of your Advances to Mobile Employees
  Reconciling tax payments made on behalf of mobile employees
• Implementing Your First Policies
  Offering a competitive compensation package and minimizing the administrative burden
• GEAR UP - Staying Up To Date with an Ever-Changing Global Landscape
  Understanding changes in your global compliance obligations and how those changes impact your global stock compensation plans

Learn about Rutlen Associates LLC

Risk Management for Mobile Employees with Equity Compensation

A major technology company was struggling how to report stock option exercises for their employees that moved domestically and internationally. The Company had about 1500 mobile employees with stock options. Historically the Company only reported income from stock option exercises in the tax jurisdiction of residence, even though the Company was required to allocate income to several tax jurisdictions.

Based on business structure and employee demographics, Rutlen Associates identified the Company's areas of noncompliance, quantified the maximum tax exposure in monetary terms, and classified the risks as red (high), yellow (medium), or green (low). Red jurisdictions were prioritized for purposes of developing solutions.

Armed with this knowledge, we developed workable solutions to address the 5 high-risk jurisdictions. Technology and administrative resource limitations were a critical component in developing appropriate solutions. Where possible, the solutions leveraged other ongoing technology projects at the Company.

Detailed action plans were developed considering the needs of Compensation & Benefits, Corporate Tax, and Relocations. The short-term action plan focused on high risk jurisdictions while the long-term action plan incorporated a comprehensive solution.

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Getting Control of Tax Advances to Mobile Employees

A semiconductor manufacturing company realized the balance in the advance account for tax payments made on behalf of mobile employees had grown significantly and subsidiary records were sketchy. The advances had been cleared annually. Due to a change in personnel, the account had not been reconciled for several years. The employee and the Company faced a potential tax liability because the advances were not cleared on a timely basis.

Working closely with the Finance Department, Rutlen Associates analyzed the accounts and prepared appropriate journal entries. Hypothetical tax withholdings and tax advances were reclassified. All adjustments were made prior to an internal audit review of the department.

New processes were drafted, implemented, documented, and tested to avoid future problems.

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Implementing Your First Policies

A small network equipment company, faced with their first mobile employee, wanted to offer a competitive compensation and tax equalization package, but didn't want to be burdened with excess administration. The employee had previously been an expatriate. The Company wanted to make sure the package would meet, but not exceed, the employee's needs.

After listening to the Company's needs and overall philosophy, Rutlen Associates developed simplified compensation and tax equalization policies. The goal was to clearly communicate the benefits to the employee and set appropriate expectations. An assignment letter incorporating all key benefits was presented to the employee.

The company established a workable standard for future transfers without the need for an elaborate infrastructure.

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GEAR UP

A global internet services company was struggling to keep up with legislative changes in 20+ countries in which they offered stock options and restricted stock units. Keeping up to date with the international changes was overwhelming, even though the company had a variety of tax, legal, accounting, and global mobility advisors. The updates received from various sources were rarely complete and occasionally conflicted with one another.

As a GEAR UP client, Rutlen Associates became a proactive member of the Company team. Rutlen Associates met with the international stock plan administrator quarterly to review the legislative and judicial changes around the world and identify action required.

The Company addressed legislative changes on a timely basis and minimized compliance risks. The stock plan administrator was able to focus on more strategic projects.

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Learn about Rutlen Associates LLC