Who this affects
Employees and Investors
iOS & Android
Employees and Investors
iOS & Android
Private companies can now report the complete list of all ISO dispositions and see exactly which dispositions qualify for tax incentives and which ones do not, along with Ordinary Income value and other information.
Under Capitalization > Reports, find the Disqualifying Disposition Report (ISO):
Select the reporting date range, acknowledge the report’s use of in-platform securities and transactions, and then export the report to Excel:
When the report finishes generating, it will be available in the Downloads menu:
The report shows info on Disposition Type, Ordinary Income, FMV and more. In order to be completely transparent, Excel formulas are used for Disposition Type, Ordinary income, First Qualifying Disposition Date, and Disqualifying Reason fields to show how they are calculated:
Private companies with tender offers or secondary ISO transactions captured in Carta.
Available now for all Private market customers (the Public market Disqualifying Disposition Report is available at request as part of the Early Access release).
For more information around the Disqualifying Disposition Report and underlying data, please refer to this support article.
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).
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.
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:
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.
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:
Soon, companies will have access to the updated Capitalization > By Share Class view. This page comes with improved performance for large Cap Tables, allowing you to view and interact with your Cap Table up to 5x faster.
To access this view, you can navigate to Capitalization > By Share Class.
We will continue to improve the experience, adding a new summary visualization to the top of the page, and improving the navigability between the By Share Class and the By Stakeholder Cap Tables.
Support Article: Capitalization Table - By Share Class
Soon, Carta customers will start seeing an expanded set of Roles to help you reflect the different individuals who are handling different aspects of Cap Table management.
For now, users assigned to new roles will serve as point of contact for their areas. Over time, these individuals will see updated experiences and be guided to relevant Carta tools.
To see this experience, Navigate to "Company > Permissions and Roles > Roles"
If Company tax data is not complete:
Click Generate Form 3922 to begin the generation of the files.
6. Refresh the page after some time if you see a spinning wheel or navigate away and return later.
The .zip file will be split out into the following three files:
For any filing questions, contact your tax advisor.
Public and Private Market companies with an ESPP.
Option exercising with Public companies is now easier than ever.
Who this affects: 🇺🇸 Public US companies
New experience for exercise requests:
Action required: No action required
Timing: Released to 100% of all public companies on Jan 24, 2022
Companies using our newest version of the financial reporting tool can now report following International Financial Reporting Standards (IFRS).
This is the first release of our IFRS reporting that includes:
1. Tranche based valuations
2. FIN28 amortization
3. Correct relationship valuation methodology (differs from US GAAP)
4. Stakeholder country field added to reports
6. Stock-based compensation expense journal entry
7. Report error validations specific to IFRS reporting
Later releases will include:
1. In-app custom assumption overrides
2. Forfeiture rate by grouping
When going to create a new expense scenario, there is now an additional step where users can select which reporting standard they want that scenario to follow. Users have the ability to create multiple scenarios to support both IFRS and US GAAP.
Once the scenario is created users can create both SBC expense reports and disclosure reports that follow the standard and give supporting calculations.
Private and public companies using our new financial reporting tool.
Available for legacy V1 IFRS users and beta customers. If you have a customer that is interested in being a beta user, reach out to Jess Carthey via slack.
GA will begin with the second release which includes in-app custom assumptions.
We are releasing a report to all Private Market companies for administrators to review their certificate cost basis and original acquisition dates. This report will allow administrators to view cost basis data prior to the delivery of 1099B tax statements to stakeholders by mid-February.
How it works
This in-app report is available by navigating from Capitalization -> Reporting -> Form 1099b cost basis report.
Administrators will be able to view columns like stakeholder details, certificate ID's, quantity of shares sold, date acquired (original acquisition date), proceeds, gain/loss, and including various cost basis fields:
From this report, Issuers can identify which certificates need to be changed and/or excluded from tax filing, and will have the opportunity to correct the data until late-January.
Who does this impact?
This report will be available to individuals with role permissions of Company Admin, and including Company Editors.
In the next month, Carta's Liquidity team will be reaching out to ensure that data has been reviewed and is considered approved by Issuers for generating 1099B statements. Stakeholders will be able to access tax statements in their portfolios by mid-February.