Carta and Deel partner to solve international option exercises

Carta and Deel partner to solve international option exercises

Author: Reed McBride
|
Read time:  3 minutes
Published date:  14 May 2024
Carta and Deel are thrilled to announce a major step forward for our ecosystem: automated global equity compliance.

As founders compete for talent, it's become increasingly common for startups of all sizes to have globally distributed teams. But as a company’s international hiring grows, so does the number of tax jurisdictions it has to consider. 

These tax considerations extend to employee equity. Granting equity to employees abroad yields global equity tax withholding obligations for employers. When those international employees exercise options, calculating local taxes, withholding correct amounts, and directing payment to local authorities in various jurisdictions has been tedious and complicated. Until now. 

Today, Carta and Deel are thrilled to announce a major step forward for our ecosystem: automated global equity compliance

I vividly remember meeting Alex Bouaziz, cofounder and CEO of the all-in-one HR platform, Deel. This was during the very early days of building Deel, but Alex already deeply understood the work and diligence required for piecing together compliance regimes, country by country. Given the increase in global hiring since then, it’s no surprise that Deel found incredible product-market fit. 

As Alex scaled his business, it became clear that together, Carta and Deel could solve a massive problem and benefit the entire startup community. So, we got to work. 

Via the Carta API, companies using Carta and Deel together can now sync equity events from Carta to Deel automatically. When global employees on Deel EOR or Deel Global Payroll exercise options through Carta, Deel will log these equity events, calculate local taxes, and collect payment for local authorities. Global tax withholdings for equity transactions, across multiple jurisdictions: painful yesterday, solved today. 

Deel image - Review exercise

With this integration, Deel and Carta have also vastly improved the employee experience for global equity holders. Deel EOR and Deel Global Payroll employees who are covered by this integration can now pay for their option exercises in their home currencies. Deel will collect funds and handle foreign exchange via its payment rails and ensure the employee’s shares are fully paid for by forwarding the correct amount to the company in USD. This solves a common pain point for foreign employees who are looking to exercise their options, and will help avoid frequent delays associated with trying to transfer USD to cover employee exercise costs. 

Deel image - Employee

With global cash and equity compensation benchmarks from Carta Total Comp, global payroll capabilities from Deel, and now global equity tax withholdings powered by Carta and Deel, there’s never been a better time to hire and motivate talent—and create more owners—in every corner of the world. 

We’re thrilled to welcome Deel to the Carta Developer Platform, and to work together with the Deel team to solve meaningful problems that impact thousands of our shared customers and empower builders around the world. 

With its debut today, this integration will cover Carta customers with Deel EOR and Deel Global Payroll employees in the following countries:

  • France 🇫🇷

  • Germany 🇩🇪

  • India (Deel Global Payroll only) 🇮🇳

  • Israel 🇮🇱

  • Italy 🇮🇹

  • Netherlands 🇳🇱

  • Nigeria 🇳🇬

  • Poland 🇵🇱

  • Portugal 🇵🇹

  • Singapore 🇸🇬

  • Spain 🇪🇸

  • Switzerland 🇨🇭

Canada 🇨🇦 will also be covered by this integration by end of Q2. 

An eligible employee should submit their option exercise request within 15 days prior to their respective option expiration date to ensure they can use the Carta–Deel integration to streamline their option exercise experience. 

Companies using Carta and Deel can activate the Carta integration in their Deel accounts today to automate their global equity tax withholdings. 

Not a Carta customer yet? Request a demo today:

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Reed McBride
Author: Reed McBride
Reed McBride joined Carta in 2019 and is VP of Strategic Partnerships + Ecosystem at Carta, and an active early-stage investor. Reed started his career as a start-up attorney at Orrick, advising tech companies on billions of dollars of VC and M&A transactions. He then scaled two start-ups over five years, building new teams and leading a diverse range of functions. Reed holds a BS in Mechanical Engineering with Highest Honors from the University of Illinois and a JD from Berkeley Law, where he graduated Order of the Coif and served on the California Law Review. When he's not at work, you can usually find him on a trail with his three kids.
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