Project Mint Google's Refreshing Approach to Global Mobility Compliance

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Kellie Manning
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1 Project Mint Google's Refreshing Approach to Global Mobility Compliance Carolina Ellerker, Global Tax Compliance Manager, Google Amanda McIntyre, Director, PwC LLP Stacy Zhang, Stock Administration, Google

2 Agenda The team Where we started The gap Introducing Project Mint Impact Q&A

3 The Team GEM Payroll and mobility PwC Employment Tax

4 The Team GEM Compliance Systems Education PwC ShareTax Equity consulting mytransfer Payroll and mobility Monthly filings Annual filings Equity filings ET Employment tax in APAC, EMEA, NORAM and LATAM

5 Where we started

6 Google s equity Broad based equity plan Specifics Global Mobility tracking Plan offered to ALL full time employees Approx 70,000 We have monthly RSU Vestings, a quarterly Trading Window and some stock options still outstanding Equity offered in over 60 countries 3,500 annual employee moves per year, of which 95% are permanent transfers. Approximately 20% of employees are mobile!

7 Our mobile population 173,569 calculations processed in countries and 37 States US$168M equity income sourced to more than one location in % calculations are automated Tax assistance for perm transfers only provided for 1 year

8 Our annual compliance review Advisers provide updates We work with outside advisers to understand changes in rules and regulations globally. For mobility we partner with PwC Review We review the information provided once a year and also ad hoc when legislation or positions change. Communicate Implement If the change will impact employees, we design a communication plan to ensure they are informed. Close partnership with Global Payroll. Changes are implemented in ShareTax, Payroll and the broker if required.

9 The gap

10 Multiple Resources - data, data everywhere Equity Planner : local rules Adviser s newsletters : change in rules PwC : weekly updates Baker Mckenzie : bi-weekly calls Solium : Tax guides and compliance module Payroll advisers and PSPs Employment Tax In house expertise GEO Updates Knowledge is like paint, it does no good until it is applied

11 Feedback from our Stakeholders... RSUs are great but taxes are complicated! Help us understand what are our obligations as a result of our equity. Moving impacts equity - I am confused! What happens when I sell my shares? Files are confusing and different between local employees and mobile employees Process to be followed for mobile employees is different Rules are confusing Conflicting advice- what should we do? What is the risk tolerance?! Help and support please!! Employees Payroll, employment tax and PSPs (payroll service providers)

The result - our super villains They were

risk of audits on a personal and company level.

12 The result - our super villains They were spending too much time with Stakeholders and Employees Captain Complexity Dr. Disconnected Universala Uncertainty Increased risk of audits on a personal and company level. Countries where reporting is not occurring on a monthly basis can create challenges. Feedback from stakeholders (complexity & uncertainty). Assumptions made when calculations were automated. Disconnected PSP s unclear about complexity of mobile equity reporting requirements

Superheros Needed - The Challenge: We had the

13 Superheros Needed - The Challenge: We had the data but It was not being utilized (too many data sources, which were not always consistent) Timing of information delivery/availability fell short Noise in the system Outdated processes and assumptions designed years prior We needed help...

14 Introducing Project Mint

Where do I begin? Set clear objectives 1. Have the right information at hand to be a trusted adviser for all business partners in relation to equity tax treatment around the world. 2.

15 Where do I begin? Set clear objectives 1. Have the right information at hand to be a trusted adviser for all business partners in relation to equity tax treatment around the world. 2. Collect the most relevant and reliable information - for Google and for the employees including specific country details 3. Make it accessible and useful to the teams in the appropriate deliverables 4. Audit equity payroll filings to ensure the correct rules have been applied

Approach 1. Planning of information needed at both employer and employee level and compile comprehensive set of questions. a. employer requirements i. monthly ii. annually iii. equity specific b.

16 Approach 1. Planning of information needed at both employer and employee level and compile comprehensive set of questions. a. employer requirements i. monthly ii. annually iii. equity specific b. employee requirements i. report of equity on annual returns ii. tax of capital gains 2. Initial input info followed by centralization of details provided by tax advisers. 3. Collecting information from tax adviser and partners obtaining clarification on the more complex scenarios (determined future and current usability) 4. Regional calls to understand local rules

17 Countries under review

18 Questions

19 Questions

20 Impact

21 i. Employees

Determining Factors Parameters to determine approach and cadence for employee education Country filing complexity - additional filings outside annual; Inbound and outbound reporting variances

22 Determining Factors Parameters to determine approach and cadence for employee education Country filing complexity - additional filings outside annual; Inbound and outbound reporting variances especially vis a vis what is to be reported through payroll; Tax impact of corporate actions (Alphabet conversion and Class C) Number of Employees in the country Noise via tickets (GUTs) and misc threads

23 New strategy Timeline for most impactful communication Education calendar Modularized education presentations Presentations via GVC v. in person Office Hours for Q&A Consistent messaging & delivery Revamped digital resources o mytransfer o Video - equity on the move o gmobility website

24 Education Calendar

25 mytransfer

26 mytransfer

27 Making Equity Simple Easy to Understand & Targeted Messaging Modularized : Live & On Demand Stock Statements

28 ii. Employer

29 Annual filings Comprehensive review of the annual tax equity filing process that has been followed in prior years. Redesigned the process followed in 60 countries by collaborating with the employment tax team, payroll and vendors to ensure the appropriate amounts are included in the country year end filings. Identified any gaps in compliance reporting during review and implemented changes to fix these problems. Annual filing calendar Education to local payrolls regarding country specific rules

30 Knowledge sharing The deliverables from Project Mint included clear and concise information in relation to the employee and employer compliance requirements. As a result: Members of our team gained the knowledge to respond to employee queries more promptly and accurately; We could provide the business with information that would be relevant to making strategic decisions; Empower the mobility and payroll teams with knowledge to respond to employee and business queries.

31 Global Mobility We were able to work together with the global mobility team regarding some of the complex rules around the world - for example: Brazil - additional support to inbound employees Australia- deemed disposition rules Canada Denmark- issues for outbounds Italy

32 Recap... Impact for GEM and payroll team Prepare deliverables Update and Iterate Analyse and centralise The Project Share Objectives Gather information Impact for employees Train

33 Thank You Carolina Ellerker Google Stacy Zhang Google Amanda McIntyre PwC

34 Thank You Thank you for attending GEO s 18 th Annual Conference in Rome. We hope you enjoyed this session. If you require CPE Credit, don t forget to Sign Out Two ways to give us your feedback on this session omobile app opaper surveys available at the door

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