What tax documents are necessary for employee shareholders?

In some transactions employee securityholders share in the proceeds of the merger. Paying employee securityholders in a merger can get confusing. When distributions are made at closing (or post-closing for escrow releases and earn-outs) some employees receive their payments through the paying agent while others receive payment from the buyer, and still others receive payments from both. To add to the complexity, some employees get 1099-Bs while others receive W-2 tax forms, even after they leave the company.

To determine what tax documents you require, please contact us at support@srsacquiom.com or contact your company’s payroll administrator.


Posted in: Clients: Tax Reporting