January FRS Newsbyte - Administrative Tips and more!

Welcome to 2010! This FRS Newsbyte contains the following content to help start the year on the right foot and make it a perfect "10" for you.

• 10 Administrative Tips for January


• International Tax Compliance


• Software Tips for Equity Edge and EASi application users

Ten Administrative Tips for January

1. TAX: Reset your database Payroll YTD Amounts to Zero; check that the FICA maximum is still at $106,800.
   a. "W-2 101" is the best 10 minutes that you will spend learning about taxation for stock options and restricted stock. Visit our website to download the presentation: http://www.frsequitystrategies.com/FRS_2008/FRS_Links.phtml


2. TAX: The Federal supplemental rate remains at 25%. Verify and update the supplemental withholding rates for the US states where your employees live and work.


3. TAX:  Complete and file a Form 1099 for any non-employee transactions that incurred ordinary income in 2009. 


4. TAX: Verify the State Disability rate (SDI) and the Voluntary Disability rate (VDI) for your state(s).  


5. ACCOUNTING: Do a new analysis for the Estimated Forfeiture Rate (EFR) that will be used as a "haircut" to your stock-based compensation expense.


6. LEGAL: Identify the terms of the Equity Plans that need to be revised.  Identify the forecast for new options and equity awards that will be granted during this new year. 


7. LEGAL:  Begin your data collection for filing the SEC Form 5s within 45 days of fiscal year-end. 


8. LEGAL:  If the company's fiscal year-end is Dec 31, plan out the 10-K and Proxy Statement responsibilities, clarify who does what, and the due dates.


9. ADMIN: Under Sec 6039 of the IRC, employees must receive a statement of information for every 2009 ISO exercise and ESPP sale or transfer.  All equity software provides an employee statement with the pertinent information that is required. 


10. ADMIN:  Publish and distribute a 2010 Calendar for the important dates that relate to the Equity Plans Dept.  Distribute to Payroll, HR, Accounting, Finance, Legal, and Tax Depts.

International Tax Compliance
Are your International Taxation procedures in place?  Non-compliance is costly for the company and employees.  Penalties and catching-up on back taxes are just a few of the concerns.  FRS has an International Tax Starter Chart that can get you started on compliance. Go to http://www.frsequitystrategies.com/FRS_2008/FRS_Links.phtml
download the chart and access other resources and tools to assist with the management of your equity plans.

Tips for Equity Edge and EASi Application Users

• In Equity Edge ver 8.2, you will be able to switch to the "cancel-date" forfeiture method.  You must true-up your expense in the fiscal period that you switch methods.


• In EASi, your Equity Plans Summary Report is under Reports-Accounting-Misc.  The A240 Report is the best report to use for reconciliations. 

As a leading provider of certified expertise in equity plan management and training services, FRS Equity Strategies can help you keep your accounting accurate and your equity plans in compliance. For equity plan questions or assistance with plan administration on a project, partial outsourcing, or full-service outsourcing basis, please contact us at clientservices@equity-strategies.com or call (408) 727-0227. I look forward to providing you with the expertise and service of FRS Equity Strategies in 2010!

Sincerely,

Marianne Brannock-Hill, CTP CEP
President and CEO
FRS Equity Strategies, Inc.