Managing NSO Tax Withholding for Exercise Requests on Pulley: A Guide for Administrators
Introduction
When stakeholders exercise their Non-Qualified Stock Options (NSOs), administrators play a crucial role in reviewing and approving these transactions, especially concerning tax withholdings. This article provides a step-by-step guide for admins on how to navigate the NSO tax withholding approval process on Pulley, ensuring compliance and accuracy.
Step 1: Accessing Exercise Requests
Navigate to the Exercise Requests page from anywhere in Pulley by using the search bar and typing "Exercise Requests."
Wait for the page to load to see all pending exercise requests.
Step 2: Reviewing the Exercise Request
Find the exercise request you wish to review. You'll see details such as the stakeholder's name, the number of options exercised, and the total cost, including exercise cost and estimated tax withholdings.
Click on "Review" to open the review modal.
Step 3: Editing Tax Withholding Rates
Within the review modal, you'll see detailed transaction information, including the stakeholder's name, email, payment method, purchase amount, cost of exercise, estimated taxes, and total cost.
If you need to adjust the tax withholding rate based on the stakeholder's actual marginal tax rate or other factors, click "Edit" next to the estimated tax rate. Note that the withholding rate cannot exceed 60% to prevent excessive withholdings due to typos or errors.
Step 4: Approving the Exercise Request
After adjusting the tax withholding rate (if necessary), save the changes. The estimated tax and total cost will update accordingly.
Click "Approve" to finalize the approval process. If the payment is being handled off of Pulley, you can mark the option as paid, completing the exercise process.
Step 5: Stakeholder Notification
Upon approval, Pulley automatically sends an email to the stakeholder (e.g., Jane Doe) informing them of the exercise approval. This email includes the exercise date, the revised tax withholdings (if any), and the total amount due, ensuring the stakeholder is aware of any changes made during the review process.
Conclusion
The NSO Tax Withholding approval process on Pulley is designed to provide administrators with the flexibility to ensure tax compliance and accuracy in exercise transactions. By following these steps, administrators can effectively manage NSO exercise requests, making necessary adjustments to tax withholdings as required.
For further assistance or clarification on managing NSO tax withholdings, please contact Pulley support.