New Equity Reporting Page

Starting 3/22, clicking on the Reporting from the Capitalization dropdown will take you to the new Equity Reporting page. 

The new page contains all the equity reports you're familiar with along with significant improvements to help you access data more quickly and in the manner that you need. You'll notice:

  • Custom reporting - set filter criteria and add, edit, and remove data columns. Save these custom reporting templates for future use.
  • Preview of securities ledger-based reports
  • Search to quickly see standard Carta-provided reports as well as your custom reports


You'll be able to switch back to the classic reporting experience via the blue banner at the top of the new Equity Reporting page until 4/5/21. 


For questions or comments, please email out to reports-feedback@carta.com

Stakeholders can now more easily review their shares and tax withholdings from RSU settlements

Stakeholders can now view details about their public RSU settlements in the RSU settlement history view.


Who this affects:

Public company stakeholders with RSU awards

What’s new: 

From the portfolio view, stakeholders can navigate to each individual RSU grant and view a comprehensive settlement history:



The settlement history shows the settlement type, shares sold or withheld for taxes, and the net shares that the stakeholder receives. 

Stakeholders can download a Settlement details report capturing the breakdown of their taxes related to the RSU settlement, asl well as shares sold or withheld for taxes:



Tax Documents on Mobile

At Carta, we want to make complex things simple and easy to understand. To that end, we’re excited to release Tax Documents on Mobile.

This update will allow Carta users to access Tax Forms 3921 and 1099-B from the dedicated Tax Documents section within their Account.

To access Tax Documents, users can navigate to their account and select Tax Documents under portfolio information. If a user has multiple portfolios, they can choose a desired portfolio to view the documents.

Users will now be able to view, download and share tax documents from the mobile app.

Health Check Dashboard [Early Access]

The Health Checks Dashboard allows you to identify, understand, and take action to fix data inconsistencies in your Carta account. It is currently rolling out to select customers under “Early Access”.

This article focuses on the following topics

  • Who can access the dashboard
  • Where to access the dashboard
  • How to navigate the dashboard
  • How to fix a health check error
  • FAQs



Who can access the dashboard

You must be a Company’s Legal Administrator, Company Editor, or Company Viewer to see the dashboard. Note that Company Viewers do not have the ability to edit company data, and will only have view-access to the dashboard. Learn more about permissions.



Where to access the dashboard

via the Company Summary Page

via the Company menu dropdown link


How to navigate the dashboard

Tags



Tags help you navigate to Health Checks related to a certain topic. If you select more than one tag, checks that apply to any of the tags will be displayed below.



Tabs



Required: Shows Health Checks that require attention as soon as possible and may post a transaction risk if not addressed. These reflect instances where bad data can propagate to other nodes in the Carta network is not address promptly


Recommended: Shows Health Checks that can improve the Carta experience and ensure different Carta experiences reflect consistent values.


Dismissed: Shows Health Checks that have been dismissed by users. Certain Health Checks will flag issues that may be expected discrepancies, from a company perspective. These will be dismissable


Health Check Cards


Each card will contain information on why a fix is important and instructions on where to fix the issue. Tooltips to the right of the title, contain guides to support articles and more details on how an issue can be addressed.


Fixing a Health Check Error


There are two types of Health Checks- ones that can be fixed by a company user and ones that require a Carta team member to make the underlying changes.

If a Health Check error has a modify action, you will be able to address the issues on your own.

For other health checks, we may recommend that you reach out to Carta Support to process the data change on your behalf.


FAQs


  1. Will Carta continue to work, if I don’t address Health Check errors?

    1. Yes, Carta will continue to work, but you may see discrepancies in Carta tools and reports. We suggest that you address required issues as soon as you can to ensure Carta works smoothly.
  2. Can Carta fix the data issues for me automatically?

    1. We take your data integrity very seriously. As such, we want to ensure all changes to data are reviewed and verified by an account owner. In some circumstances, we’ve improved the product to capture more data and need your help populating the new data fields.
  3. Why is it important for me to address Health Check errors?

    1. All Carta tools depend on clean and accurate data to work correctly. For example, an expense report requires vesting schedules and stakeholder relationships to be filled out correctly. 


New stakeholder address management features for Carta admins

Company administrators can now use the stakeholder address history feature to track multiple, effectively-dated addresses per stakeholder as they move from location to location. Additionally, we've also improved the experience around managing and viewing addresses in Carta for stakeholders based outside of the United States.

Who this affects:

Company administrators responsible for managing stakeholder information in Carta

What’s new:

  • Multiple, effectively-dated addresses per stakeholder. Companies can now reflect a timeline or history of addresses for a stakeholder as they move from location to location
  • Extra structure for non-US addresses. For stakeholders based outside of the US, companies can now track and view stakeholder address information at the country, country region (i.e. state/province/county/etc.), and city level
  • Integration with Carta's tax system. When an option exercise occurs, Carta will estimate tax withholding amounts using multiple tax jurisdictions if the stakeholder lived in more than one location during the vesting period

Track stakeholder address history as they move from location to location:

Old form for adding a non-US stakeholder address:

New form for adding a non-US stakeholder address:


Timing:

All companies will have access to these new features by Wednesday, February 3rd

Resources:

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:

International exercising - submit and settle your exercise with Carta

Non-US optionholders at US private companies will now be able to initiate and pay for option exercises through Carta.

Who this affects:

  • 🌐 Non-US optionholders at US private companies that have enabled this feature

Supported platforms:


What's new: 

  • Submit exercises on Carta - When enabled by your company, option exercises can be initiated within Carta.
  • Submit payment to Carta - After admin approval, pay for your exercise with a wire transfer to Carta. Once Carta receives the full cost of the exercise, funds are transferred to the issuing company.

  • Exercise and payment status - Track exercise and payment status within Carta. Be notified of any issues with your payment.
  • Immediate certificate generation - After receiving the funds for your exercise, a stock certificate is immediately generated for company officers to sign.

Timing:

  • All US private companies will be fully transitioned to support Non-US exercising by March 2021.

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: 

Exercise flow improvements

Optionholders at private companies will now see an improved exercising experience where they can clearly see fair market value (FMV), exercise spread, and option income. 


Who this affects:

  • Optionholders exercising option grants from private companies


What's new: 

  • Current fair market value (FMV) - Optionholders can see the current fair market value the issuing company has on file, which determines the tax implications of their exercise.

  • Exercise spread on option grant - Optionholders can see the per-grant spread when selecting a grant to exercise. This shows the difference between exercise price and fair market value.

  • Overall gain/loss - When selecting the quantity of shares to exercise, optionholders can see the overall gain/loss for their exercise. This is useful for understanding tax implications of an exercise.
  • Tax implications - Optionholders will be able to see tax implications more clearly. If the exercise is taxable and the issuing company has provided tax rates for the jurisdiction of the holder, the holder will see a table of the relevant taxes for their exercise. 





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

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