Payment Status Updates

What’s New

The Payment Status Updates on the Exercising workflow provides users a more accurate reflection of the status of their exercise during the money movement step of the exercise. Error messaging will now provide a single failure message clarifying what caused their exercise to become stuck during the money movement step of the exercise including errors around cancelation requests, bank account removal, and insufficient funds in the bank account.

Who this affects

All users exercising for private companies on Carta.

How it works

Today, users can view the status of their exercises in progress on the Holdings page and with the new Payment Status Update feature, these exercises will now display an ‘Error’ bubble beside the active step when the exercise gets stuck. Clicking the ‘View details’ button will navigate the user to the Exercise tab on the Option grant modal with user instructions to help resolve their stuck exercise. 

On the Exercise tab, error messaging will provide user action to contact their company admin through the Option grant modal’s Report Issue tab, to contact Carta Support through the chat, or update their bank account information on the Payment Information page. 


Insights for Carta Total Compensation

What’s new?

In order to communicate more information about the benchmark data in Carta Total Compensation, we are now providing several metrics to provide greater clarity around both our peer groups and individual benchmarks. This new information includes aggregate sample size data, benchmark confidence indicators, and more information about each job area/level (including details like complexity, autonomy, and scope).

Aggregate sample sizes in Total Comp

The Bands page now highlights the aggregate sample size to give you insight into the data that contribute to Total Comp’s benchmarks for a particular peer group.

How do I locate the aggregate sample size for a particular peer group?

  1. Navigate to the Bands page.
  2. Select your peer group.
  3. The aggregate sample size for said peer group will be listed under the selected peer group.
  4. This includes both the number of records as well as the number of companies which factored into the benchmarks for the specified peer group.

Benchmark Confidence 

Carta provides confidence metrics for sample size, recency, and goodness of fit to understand Carta’s stated confidence in the benchmark for a particular band. Confidence metrics are calculated for the band (job area x level) across all peer groups. 

  • Sample size: The number of datapoints included in this benchmark.
  • Recency: The relative proportion of newly effective datapoints underlying the benchmark.
  • Goodness of fit: The accuracy of the model to predict benchmarks based on trends in the underlying data. 

How do I find the benchmark confidence for a particular band?

You can find the benchmark confidence for a particular band either by:

  1. Navigating to the Bands page and hovering over the band to view the band level confidence tool tip.
  2. Navigating to the Bands page and selecting a role within the bands table to launch the Job Breakdown Modal.

Band Level Details

Band level details provide complete benchmark information all in one place. This includes percentile data for salary and equity, benchmark confidence metrics, and additional details about each job area/level.

  1. Band overview: High-level details for the selected band (area x level).
  2. Compensation breakdown: Visual breakdown of the salary + equity compensation for the selected band across all target percentiles.
  3. Benchmark Confidence: Visualization of Carta’s confidence in the underlying sample size, recency, and goodness of fit for a given benchmark.
  4. Band level details: Explainers covering the roles and responsibilities for the currently selected band (job area x level).

How do I enable Insights for Carta Total Compensation?

In order to access the new Insights functionality in Carta Total Compensation, you must first ensure your account is updated to the 2022-07-12 benchmarks. You can update your compensation plan to use the latest benchmark versions either by:

  1. Visiting the Plan page and clicking on the "Update available" link in the Active Plan window.

  1. Navigating to the Bands page and clicking on the "Update" bubble in the top left.

You will have the opportunity to preview the new plan with the updated benchmarks version and assess their impact on your scorecard before accepting the new plan.

What's next?

Carta Total Compensation will add the ability to define variable compensation programs and assign them to employees

83(b) Automated Submission

What’s New

Users that choose to early-exercise will now be able to submit an 83(b) form automatically to the IRS while exercising. Furthermore, users can now update their SSN, digitally sign the 83(b) form, and review personal information during the exercise request. In addition, users now have an improved UI to access the PDF and tracking number of their 83(b) form on the 83(b) Elections tab on the Option Grant modal.

Who this affects

Any US-based users with early exercisable option grants, and ACH eligible who choose to early-exercise through Carta. 

How it works

83(b) Automated Submission Option During Exercise Request

The 83(b) Automated Submission option will be available during an exercise submission. Users will be able to choose between performing an Automated 83(b) Submission or a Manual 83(b) submission (if the user selects to submit their 83(b) form manually, they still have the option to utilize the automated submission feature through the Option grant modal as long as the current date has not exceeded 25 days from the exercise date).  







Figure 1: On the Review Tax page, users now are given the option to automatically submit an 83(b) form or manually submit the form; If the user chooses to submit the automated 83(b) form, they can add/update their SSN directly






Figure 2: Updated Sign and Submit modal which includes an Automated 83(b) Submission Agreement section signed via digital signature.


Figure 3: Updated Congratulations page stating that the 83(b) form is being sent to the IRS. 



Figure 4: 83(b) elections tab on the Option Grant modal to view the USPS tracking number and the submitted 83(b) form.  


Included Personal Information

To submit an automated 83(b) submission, a Social Security Number (SSN) is required by the IRS to properly verify the identity of the user. If the user’s SSN isn’t filled in the Account settings, users have the ability to add and confirm their SSN when selecting their submission method. Otherwise, when users navigate to the Review Exercise page, the automated submission will pull the user’s Name, SSN, and Address directly from the Account settings.


Digital Signature

On the Sign and Submit modal (Figure 2), users agree to automatically submit the 83(b) form by signing the agreement via digital signature. The digital signature is added directly into the PDF of the 83(b) form.

Status of submission 

The 83(b) form PDF and Tracking number will be provided and displayed in the Option grant modal on the 83(b) Elections tab. The user will be able to track and check the status of their 83(b) Automated Submission.

83(b) Manual Submissions

Manual 83(b) Submissions UI has been improved on the 83(b) Elections tab providing users with an 83(b) form to print and sign which is to be mailed manually by the user. To complete their manual submission, users will be required to upload their signed copy of the form in addition to the date that the 83(b) form was sent to the IRS on Carta. Further, users may choose to submit an automated submission on the 83(b) Elections tab.



FAQ

1. Can I still use the previous workflow for 83(b) Submission?

Yes! If you would prefer to file your 83(b) form manually, you still have the ability to do so! During the exercise workflow, you may select “Submit an 83(b) form later” as your submission method, and you’ll have the option to download and print an 83(b) form from the 83(b) Elections tab on the Option grant modal.


2. What happens if my exercise gets stuck or canceled?

If you select automated submission of your 83(b) election, it will be initiated immediately after you finish submitting your exercise.  If your exercise gets canceled, you should consult with your legal and tax advisors on what to do with your filed 83(b) election form.

3. How will I know that the IRS has received my automated submission? Will I be able to closely follow the progress of the 83(b) submission?

You can navigate to the 83(b) elections tab on the Option grant modal to verify the status of the 83(b) form using the tracking number provided by USPS to follow the progression of your 83(b) submission. Status updates are available as soon as the package is delivered to the USPS.

We highly recommend printing and storing the online USPS confirmation as this information is only available for a limited amount of time. 



Additional Resources

Improvements to Engineering Specializations

Benchmarks 2022-06-16

What changes can I expect from these benchmarks?

This version resolves an issue with level progression in the benchmark version released on 2022-06-09. If you did not update to the 2022-06-09 benchmarks you were not impacted by this bug. There are no other changes to benchmarks or specializations in this release.

Carta will now provide salary + equity benchmarks for the following engineering specializations:

  • AI and Machine Learning
  • Hardware
  • Mobile
  • Web Engineering

In addition, benchmarks data has been refreshed for the following existing engineering specializations:

  • DevOps and Site Reliability
  • Quality Assurance
  • UX/Frontend

Note that for all of our specializations the sample size is smaller than job area benchmarks which could result in data volatility as we continue to update the data and grow our overall sample size.

What were the largest areas of movement from these benchmarks?

For existing specializations, salaries increased an average of approximately 3% compared to the previous version of the benchmarks. The largest increases are generally concentrated at more senior levels and in higher valuation peer groups. We also observed some decreases in the salary benchmarks, mostly at levels 1 and 2 at valuations below $50 million. While some of these changes are driven by market dynamics, some of the change is driven by the limited sample size for these roles. Equity benchmarks also reflect a mix of increases and decreases compared to the last benchmark version which are also being driven by a combination of market dynamics and sample size.

How do I update my plan to use the new benchmarks version?

You can update your compensation plan to use the latest benchmark versions either by:

  1. Visiting the Plan page and clicking on the "Update available" link in the Active Plan window.
  2. Navigating to the Bands page and clicking on the "Update" bubble in the top left.

You will have the opportunity to preview the new plan with the updated benchmarks version and assess their impact on your scorecard before accepting the new plan.

How can I assign an employee to a specialization?

You can assign an employee to an engineering specialization by: 

  1. Visiting the Employee Scorecard page for a particular employee and selecting “Edit” next to the employee’s role and then selecting “Job area and level” on the Update details page.

  1. Select the “Specialization” dropdown to assign an employee to one of the listed specializations.

Note: specialization benchmarks are currently limited to AI and Machine Learning. DevOps + Site Reliability, Hardware, Mobile, Quality Assurance, UX/Frontend, and Web Engineering for the engineering job area.

How do I see benchmarks for engineering specializations?

You can view benchmarks for engineering specializations by:

  1. Visiting the Bands page and selecting “Engineering” under Area. Once the engineering job area is selected, you can change the engineering specializations by selecting the Specialization dropdown.


How do engineering specializations affect the Employee Scorecard?

The compa-ratio is a quick way to compare an employee's compensation to your plan's target rate for a given job area, level, and location. The compa-ratios for an employee assigned to the AI and Machine Learning, Hardware, Mobile, and Web Engineering specializations will now be calculated using the target compensation for the specializations.

What’s next?

Additional functionality around data transparency that will provide users insight into the underlying data used to generate benchmarks in Carta Total Compensation.

New Employee Scorecard & Engineering Specializations

What’s new?

New Employee Scorecard

We’ve restructured the Employee Scorecard to increase legibility and improve comprehension of your employee’s role information and compensation details. 

The updated Employee Scorecard is broken down into logical groupings of information to help you quickly identify important information.

  1. Employee Overview
  2. Annual Compensation Breakdown
  3. Equity Breakdown

Engineering Specializations Benchmarks 2022-06-09

What changes can I expect from these benchmarks?

Carta will now provide salary + equity benchmarks for the following engineering specializations:

  • AI and Machine Learning
  • Hardware
  • Mobile
  • Web Engineering

In addition, benchmarks data has been refreshed for the following existing engineering specializations:

  • DevOps and Site Reliability
  • Quality Assurance
  • UX/Frontend

Note that for all of our specializations the sample size is smaller than job area benchmarks which could result in data volatility as we continue to update the data and grow our overall sample size.

What were the largest areas of movement from these benchmarks?

For existing specializations, salaries increased an average of approximately 3% compared to the previous version of the benchmarks. The largest increases are generally concentrated at more senior levels and in higher valuation peer groups. We also observed some decreases in the salary benchmarks, mostly at levels 1 and 2 at valuations below $50 million. While some of these changes are driven by market dynamics, some of the change is driven by the limited sample size for these roles. Equity benchmarks also reflect a mix of increases and decreases compared to the last benchmark version which are also being driven by a combination of market dynamics and sample size.

How do I update my plan to use the new benchmarks version?

You can update your compensation plan to use the latest benchmark versions either by:

  1. Visiting the Plan page and clicking on the "Update available" link in the Active Plan window.
  2. Navigating to the Bands page and clicking on the "Update" bubble in the top left.

You will have the opportunity to preview the new plan with the updated benchmarks version and assess their impact on your scorecard before accepting the new plan.

How can I assign an employee to a specialization?

You can assign an employee to an engineering specialization by: 

  1. Visiting the Employee Scorecard page for a particular employee and selecting “Edit” next to the employee’s role and then selecting “Job area and level” on the Update details page.

  1. Select the “Specialization” dropdown to assign an employee to one of the listed specializations.

Note: specialization benchmarks are currently limited to AI and Machine Learning. DevOps + Site Reliability, Hardware, Mobile, Quality Assurance, UX/Frontend, and Web Engineering for the engineering job area.

How do I see benchmarks for engineering specializations?

You can view benchmarks for engineering specializations by:

  1. Visiting the Bands page and selecting “Engineering” under Area. Once the engineering job area is selected, you can change the engineering specializations by selecting the Specialization dropdown.


How do engineering specializations affect the Employee Scorecard?

The compa-ratio is a quick way to compare an employee's compensation to your plan's target rate for a given job area, level, and location. The compa-ratios for an employee assigned to the AI and Machine Learning, Hardware, Mobile, and Web Engineering specializations will now be calculated using the target compensation for the specializations.

What’s next?

Additional functionality around data transparency that will provide users insight into the underlying data used to generate benchmarks in Carta Total Compensation.

Total Comp Geo Factor Refresh

What's new?

Benchmarks version 2022-05-26

What changes can I expect from these benchmarks?

Geographic adjustments have been updated to reflect current cost-of-labor data across the US. There have been no changes to the underlying benchmarks that were released on April 13, 2022, details of which can be found here.

Given the current sample size of Carta Total Compensation we are now able to rely on data from Total Compensation customers, representing the broad tech industry, to determine cost-of-labor differentials in 33 cities (previously 17 cities). For all other US metropolitan areas we continue to rely on data from the Bureau of Labor Statistics (BLS) which is based on a wider set of industries and type of employee.

What were the largest areas of movement from these benchmarks?

For most of the largest markets in Carta Total Compensation we’ve observed an increase in pay relative to the San Francisco Bay Area. Some of the changes to key markets include the following (SF Bay Area = 100%):

Metro Area
Previous Adjustment
New Adjustment
New York-Newark-Jersey City, NY-NJ-PA
89%
100%
Seattle-Tacoma-Bellevue, WA
97%
100%
Los Angeles-Long Beach-Anaheim, CA
85%
94%
Boston-Cambridge-Nashua, MA-NH
87%
94%
Austin-Round Rock, TX
82%
91%
Miami-Fort Lauderdale-West Palm Beach, FL*
68%
90%

* Data source for Miami has changed from BLS to Carta Total Compensation due to our increased sample size.

Outside of our largest markets we observe a mix of increases and decreases relative to Bay Area compensation levels, but on average there has been a slight increase.

How do I update my plan to use the new benchmarks version?

You can update your compensation plan to use the latest benchmark versions either by:

  1. Visiting the Plan page and clicking on the "Update available" link in the Active Plan window.
  2. Navigating to the Bands page and clicking on the "Update" bubble in the top left.

You will have the opportunity to preview the new plan with the updated benchmarks version and assess their impact on your scorecard before accepting the new plan.

Improvements to MSA borders

Carta Total Compensation currently defaults employees who are not in a supported Metropolitan Statistical Area (MSA) to a geographic adjustment factor equal to your plan’s threshold value. With this update, Carta Total Compensation will now use the adjustment factor for the nearest supported MSA.

What’s next?

Additional functionality that will allow users to apply a level-based approach to geographic adjustments.

Cashless Exercising on Mobile

Carta users will now be able to perform a Cashless Hold Exercise and Cashless Sell Exercise on the mobile app. 

Who this affects

  • Public Markets Users

Supported Platforms

  • iOS and Android

What’s new

Users with holdings in public companies on Carta will now be able to exercise and sell their shares via a Cashless Hold or Cashless Sell transaction while on-the-go through the Carta mobile app. These features were previously available to users via desktop, and this launch closes the previously existing gap in functionality between the Carta web experience and the Carta mobile app. 


Web-Login on Mobile

Carta mobile app users will now be able to login using a web-browser on iOS and Android. Web-login gives us the benefits of browser-based authentication, and better security, without disrupting the user experience.

Who this affects

Employees and Investors

Supported Platforms

iOS & Android

What’s New

In an effort to bring login and authentication together across all Carta platforms, we are launching browser-based login on mobile. The web-login experience will use Safari on iOS and a default browser on Android.



Revamped Employee Onboarding Experience

Employees registering their account on Carta for the first time can now provide their personal information as part of the onboarding process to complete their user profile. 

Who this affects?

Employees who have been issued ISO/NSO option grants or Restricted Stock Units and are registering with Carta for the first time. 

What’s new?

With an objective to provide insightful experiences, we’ve revamped the employee onboarding process to allow users to complete their user profile. Every employee registering with Carta for the first time to accept their first RSU or ISO/NSO option grant will now have the ability to provide the following information:

  • Personal details such as name, date of birth and country of citizenship 
  • Tax ID 
  • Address

Capturing these details upfront allows employees to be transaction ready for events such as exercising.

 

After successfully completing their user profile details, users will be directed to the Tasks page where they can accept their security.  

Timing

  • Available now to 20% of randomly selected Carta customers 
  • General availability for all Carta customers coming by the end of Q2

Save time on administrative tasks with HRIS integrations

What’s new?

Carta now supports integrations with 150+ HRIS and payroll providers. Customers that integrate their HRIS with Carta will have access to Pending Stakeholder Terminations, Pending Updates to Stakeholders, and Carta Total Compensation (with an active subscription). 

What are the benefits of integrating my HR system with Carta?

Your organization can unlock a new level of automation that helps you become more efficient and make better-informed decisions about your equity program with Carta’s HRIS integration. More specifically, HR integrations will help your organization in the following three ways:

1. Quickly update employee records

Reduce double entry, win time back, and gain a single source of truth for critical employee information like terminations and employee addresses.

2. Keep employee data synced across systems

With HRIS and equity data synced, you can trust that your information is always ready to take action on. If there is ever a discrepancy, Carta will flag it and make it easy for you to reconcile.

3. Calculate and understand tax impact

Employees’ tax impact has never been easier to understand with salary, location, and equity information complete in one place. Carta can help inform employee tax liability for taxable equity events.

What are the steps to integrate my HR system with Carta?

There are two steps that need to be taken to properly integrate your HR system:

1. Connect your HRIS

There are a few variations for connecting each HRIS system depending on the system’s API configuration. However, this should take no more than two minutes to complete for any provider. Here are specifics for each provider Carta integrates with:

  • Rippling
  • Bamboo
  • Namely
  • Finch - Carta uses a product called Finch to integrate with 100+ HRIS and payroll providers, including Gusto, Trinet,  and Justworks. 

Note: Only those with Company Editor, Company Administrator, or Legal Administrator permissions can perform the HRIS integration on Carta. Most HR systems also require the individual authenticating the integration to have the highest permission level too.

2. Match employee records from your HR/payroll system to stakeholder records on Carta

Carta will match the list of employees in your HRIS to the stakeholder ledger in Carta by looking at First Name, Last Name, and Email, then ask you to review them for accuracy. Please see here for how to perform the Employee ID matching process

Note: This is a necessary step for you to take to be able to take advantage of integrations.

How do I take advantage of the integrations once I have completed the initial integration?

There are two specific modules that will allow your organization to make use of your HR system integration with Carta: Pending Terminations and Pending Updates to Stakeholders. 

Please see below for how to use these modules to help you manage data coming from your HR system on Carta: 

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