Equity compensation is often paid or vests at a time other than the regular payroll date. IRS payroll deposit rules may require tax deposit dates for these “off-cycle” payments that are earlier than regularly scheduled payroll deposit dates. As a result, companies may miss the deadlines.
Given the complexity of the deposit timing rules, employers could potentially face penalties if deadlines are missed. Thus, it would be prudent to avoid certain pitfalls.
Read a July 2016 report [PDF 88 KB] prepared by KPMG LLP: What’s News in Tax: Late Deposits of Federal Employment Taxes for Equity Compensation Transactions—Pitfalls to Avoid
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