Payroll Tax Deposit Timeline for Equity Compensation

This document outlines the SEC's new T+1 rule, effective May 28, 2024, which shortens the settlement period for equity compensation transactions. It details the implications for payroll tax deposits, including changes to deposit timelines and penalties for late payments. Employers offering nonqualified stock options (NSO) and restricted stock units (RSU) must adapt their payroll processes to comply with these new regulations. Stay informed to ensure compliance and avoid penalties.