Tax mobility feature available to Carta admins

For company administrators using the new "Tax rules" page in Carta, they can now choose to enable the tax mobility feature for their company. If tax mobility is turned on, Carta will use a stakeholder's address history when estimating taxes for withholding purposes.

Who this affects:

Company administrators with access to the "Tax rules" page in Carta

What’s new:

  • Enable tax mobility for more accurate tax withholding estimates. Companies can turn the tax mobility feature on under Compliance > Tax rules. If tax mobility is enabled, Carta will look at a stakeholder's full address history when estimating applicable taxes for a withholding event (e.g. NSO option exercise, RSU settlement).

If you don't already have access to the "Tax rules" page in Carta, reach out to your account manager to request access.

Navigate to Compliance > Tax rules to find the tax mobility feature:

Timing:

All companies with access to the "Tax rules" page will have access to the tax mobility feature by Wednesday, February 3rd

Resources:

Option exercise settings for exercises initiated and settled on Carta

Managing option exercising is now easier than ever. 

All exercises are now settled through Carta—US optionholders pay via ACH, Non-US optionholders pay via a wire transfer. Carta conveniently manages payment reconciliation and payment issues such as insufficient funds or overpayments. US private companies can centrally adjust exercising via the Transaction Settings page. 

Who this affects:

  • 🇺🇸  US private companies 

What's new:

  • 💸 All exercises are settled with Carta - No matter where your optionholders are located, Carta will receive all funding for on-platform exercises. US holders pay for their exercise via ACH and non-US holders pay for their exercise via a wire transfer to Carta. Company admins will no longer need to mark exercises as paid. 
  • ✉️Communication with optionholders - Carta communicates directly with optionholders to resolve payment issues, letting them know of an outstanding balance for an exercise or facilitating a refund for overpayment. 
  •  Auto-cancel unpaid exercises - If a wire exercise is unfunded or underfunded for 30 days after admin approval, the exercise will automatically be canceled. 
  • ⚙️ Clear transaction settings - Control option grant exercisability easily in one central location

Timing:

  • To be rolled out to all customers by the end of February 2021

Action required: 

  • Visit Company > Settings > Transaction Settings to opt in
  • Once your company has access to this feature, you must opt in within 30 days otherwise online exercising will be disabled
  • If you do not yet have access, reach out to your Customer Support Manager to get immediate access

Resources: 

Limited Partner Onboarding flow

Limited partners now confirm that their information is accurate when viewing new investments on Carta. This will help ensure accurate information for tax season.

Who this affects

Limited partners with fund investments on Carta and funds using Carta's fund admin and LP portal products

What's new

Limited partners can now review and update their information in the onboarding flow for their fund investment. 

  • Limited partners can confirm or update their address information
  • If a new address is added, they can use that for all of their fund investments

Timing

This was released for Limited Partners on January 14, 2021

Limited Partner Settings

The new Limited Partner Settings page allows Limited Partners to control their information across fund investments on Carta.

Who this affects

Limited partners with investments into funds on Carta.

What's new

Limited Partners can now manage and share their information across fund investments. Previously, Limited Partners had to contact their fund admin or the Carta support team to update their information. Now they can update their address and other information used for taxes and distributions in Settings.

  • Limited Partners can choose to use an address for individual fund investments or apply to all investments
  • When updating an address, a Limited Partner can choose to make that their “default” address to be used for any new investments added to Carta.
  • Partners investing through multiple entities can swap between entities and assign the correct information to each fund investment.


Timing

This went live to all Limited Partners on January 6, 2021

Email customization for document sharing

This month we released a new feature on Carta to allow users of a fund to customize the email sent to LPs when sharing documents. This feature is available for all Fund Administration and LP Portal customers. To use the feature:

1. Select ‘Share documents’ on the Documents page.

2. After select Share documents you will have three options for sharing documents: Send with daily digest, Send immediately, No notification.

3. When ‘Send immediately’ is selected you will have the option to
Open email editor.


4. The email editor will allow you to:

  • Customize the subject line
  • Customize the header
  • Customize the email body
  • Include dynamic fields in your text
  • Send a preview email to yourself before sending

 5. After completing the email customization, you will be able to share the documents to your LPs.


Information Clarity in the Equity Awards Ledger

What’s coming: The "Quantity" column shown in the "Options" tab of the Equity awards ledger will be re-labeled to "Original quantity" to more accurately reflect the information in this column.

We're highlighting this small change because it comes in anticipation of some improvements to Carta's transactional workflows that will reinforce the dynamic nature of option grants and their quantities.

Who this affects: All companies

What’s better: Information clarity

Timing: Live for all customers December 7th

Exercisability settings for non-US companies

Non-US, private companies in supported regions now have the ability to enable exercising workflows for their optionholders. Optionholders can access wire payment instructions within Carta after exercise approval to send funds directly to the company.


Who this affects:

  • 🇰🇾   private Cayman Island companies
  • 🇨🇦   private Canadian companies
  • 🌐   + more locations in the future! 

What's new: 

  • Supported non-US, private companies can enable offline wire exercising, allowing their optionholders to initiate and track an exercise request within the Carta platform. 
  • Company admins can manage payment instructions that are provided to optionholders after an exercise is approved. 
  • Company admins can toggle exercisability on and off, as well as select which grant types are exercisable.

Action required: 

  • Company admins must visit the Transaction Settings page to enable exercising
  • Companies must have a valid fair market value (FMV)

Resources: 



Using Custom Spreadsheets When Adding New Stakeholders in Bulk

What’s coming: Admins can now upload new stakeholder information using data stored in custom spreadsheets/reports 

Who this affects: All companies 

What’s better:

For companies that use HR Providers to store their stakeholder/employee information, their company admins can now upload new hire information into Carta in bulk using the HR Provider's report (xls, or xlsx) with minimal modifications.

This workflow is an enhancement to the existing Bulk Add Stakeholders flow, with a new step for users to map the columns in the report to Carta data fields.


Timing: Live for all customers Oct 20.

Changes to Watermark Styling

We've listened to your feedback on watermark styling obstructing the readability of the documents and we've made a few changes to address those concerns. We'll continue to iterate on our watermarking capabilities and tools in the coming months and we are starting with the following changes.

Here's a sample document with the old watermark styling


Here's the same sample document with the new watermark styling


Specifically, we've made the following changes with this iteration:

  • Reduced opacity of the watermark text
  • Updated alignment between the rows
  • Fewer repetition

Who these changes affect?
All Carta users who choose to apply watermark on their documents. These changes will be rolling out to all users today.

Improvements to the exercise approval screen

What's coming: 

Make more informed decisions when reviewing and approving option exercise requests with key information at your fingertips

Who this affects:

Users with the "Option exercise approver" role in companies issuing stock options with online exercising enabled

What's better: 

  • The ability to approve or reject exercise requests
  • Information about the option grant and stakeholder is readily available
  • Clearer presentation of information

New exercise approval screen:

Previous exercise approval screen:

Timing: 

  • Rolling out to 10% of customers on September 28, 2020
  • Release percentage will slowly increase to 100%
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