CARTA CUSTOMER JOURNEY GUIDES

The Carta Experience: Employees


Contents

Registering a Carta account
Employee vs. admin responsibilities
Communication from Carta
Exercising options
Equity education
Tax forms
Resources to share

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What do I need to know about Carta’s employee experience?


Investing in your employees’ equity experience has a lasting impact on your company’s future. We’ve created a comprehensive guide to help you understand and shape a positive employee experience. Below, you’ll find everything you need to know about what your employees can expect on Carta.

 We recommend sending our 'Heads up’ email to employees. This includes an introductory video and resources outlining the basics of getting started.  

Registering a Carta account & accepting securities

Once your company issues equity awards and they are signed by the necessary officers, employees will receive an invitation to register on Carta.

  • If they have previously registered, they will be prompted to login and accept their awards


BEFORE ACCEPTING: Employees can review the details of their award(s) and report any discrepancies directly to the company administrator

ACCEPTING A SECURITY: First, employees are required to read the terms and all attached documents. Then, they are required to provide an electronic signature. 

WHY IT MATTERS: It is necessary for employees to accept their awards. Until they accept, they are unable to use any additional features like submitting an electronic exercise request.

If an employee is unable to register or accept awards, direct them to our Support team for technical help

What employees manage vs. what admins manage

In this section, we’ll break down what employees can manage on their own and what requires your oversight, so everyone understands how to best navigate and utilize Carta.

What employees manage What admins manage

  • The email address registered to their account
  • E-signature

  • Backup email address

  • Who can access their personal portfolio & holdings

  • Payment information

  • Email notification settings

  • Basic information such as name, birthdate & current address

  • Initiating exercise requests

  • Filing Form 3921 Copy B or 83(b) election form

  • The email address for communication regarding their holdings at your company

  • All award details

  • Basic information pulled from HRIS integration (if applicable)

  • Start date/termination date

  • Approving/denying exercise requests

  • Generating Form 3921 Copy B (if applicable)
Direct your employees to our Support team for any questions or help needed with their account

Types of emails employees receive from Carta

A common question asked by company admins is, ‘What emails will my employees receive from Carta?’ We’ll communicate essential tasks and updates, so you don’t have to.

TYPES OF EMAIL COMMUNICATION: 

  • Account verification
  • Reminders for security acceptance or option grant actions
  • Notifications on updates (e.g., password resets, company name change, communications sent through Carta)
  • Reminders for option expirations or vesting events

With security and compliance as a top priority, only certain modifications to securities will trigger an email to employees. Before finalizing changes, Carta will inform you whether or not an email will be sent.

 Carta will not communicate any sensitive company information such as a new financing event or closing of your account

How employees exercise their options

Through Carta, employees can model different exercise scenarios, submit electronic exercise requests, or access the necessary documents needed for manual processing. Let's dive in:

EXERCISE SIMULATOR: Employees can use the simulator to estimate exercise costs by adjusting the exercise date to view potential vesting and exercise quantities

  • EXERCISING VIA ACH: This is the preferred method for US option holders for companies that have enabled online transactions

    • Employees submit an exercise request in-app by confirming residency, electronically signing the necessary documentation and providing their ACH information
    • Once approved by a company administrator, the funds are withdrawn
    • After the funds have been verified, the resulting certificate is automatically generated and sent to company officers for signature

  • EXERCISING VIA WIRE: This option is for non-US option holders

    • Employees submit an exercise request in-app by confirming residency and electronically signing the necessary documentation
    • Once approved by a company administrator, employees receive an email notification regarding wire instructions. In Carta, they’ll be prompted to provide the date and (optionally) a transaction reference number.
    • Once funds have been received and confirmed by the company admin, the resulting certificate will be created

  • MANUAL EXERCISE REQUESTS: Exercising manually does not require employees to set up a bank account or electronic signature within Carta

    • Employees print out the necessary documents attached to their equity award(s) and process the transaction offline
    • After offline transaction is complete, company administrators will then initiate the manual exercise in Carta
 The date in which an exercise request is submitted by an employee is considered the exercise date

 Carta Equity 101 courses and education

We know that understanding equity can be difficult, so we have a variety of resources available for free to your employees.

EQUITY 101 COURSES: Digital courses that cover everything from understanding what an accredited investor is to understanding vesting. This course covers the general terms and information an employee should know to make educated decisions about managing their equity awards and taxes. Available to all employees who are on Carta!

CARTA CLASSROOM FOR EMPLOYEES: Our extensive library of articles detailing equity basics that employees should know, like the different types of equity, what vesting means or how options can gain value over time.

    Find the full list of shareable employee resources below

    Keeping track of tax information

    Employees can find tax forms related to their equity in their personal Carta account during tax season under the Tax Documents section. Below, are the different tax forms an employee can find on Carta:

    FORM 3921

    • WHAT IT IS: This form is for employees who exercise incentive stock options (ISOs). It reports crucial information to the IRS including the exercise price, fair market value, and the exercise date. 

    • WHY IT MATTERS: The IRS uses this information to ensure that employees properly report any potential tax implications, particularly for Alternative Minimum Tax (AMT).

    • HOW IT WORKS: After your company has generated and delivered Form 3921’s in Carta, employees receive an email notification directing them to print or download the form(s). Any forms generated in Carta will be stored in their personal portfolio under the tax documents section. 

    83(b) ELECTION:

    • WHAT IT IS: A tax form only for early exercisable grants. With an 83(b) election, employees can choose to pay taxes on the stock’s value at the time of the grant, even though the stock hasn’t vested yet.

    • WHY IT MATTERS: This can help reduce their overall tax burden if the stock has increased in value. By locking in lower tax rates on future gains, this can result in significant tax savings for employees.

    • HOW IT WORKS: Carta automatically recognizes when a grant is eligible for 83(b) election. Employees can choose to generate this form during the exercise request to print and send it to the IRS themselves.  
    Integrating your HRIS system streamlines the process for adding and managing stakeholders

    Resources to share directly with your employees 

    Below you will find a list of additional resources for employees to help them navigate and use Carta:

    Employees can contact our Support team at anytime if they have questions or experience technical issues

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    Additional services to enhance the employee experience

    Go beyond education to help your employees understand the full potential of their salary and equity compensation.

    Carta Equity Advisory: Help your employees understand their equity compensation with advice on exercising and selling decisions, all from experienced Equity Tax Advisors

    • Unlimited 1:1 equity education sessions
    • Model tax scenarios for exercising or selling
    • Tailored company-wide webinars

    Carta Total Compensation: Streamline your offer process, improve pay transparency and help employees see the true value of their total compensation package

    • Visualize the full picture of what your company is offering to your employees
    • Interactive tools to showcase future earning potential
    • Manage all compensation-related communication in one place
    Reach out to our Accounts team if you’d like to learn more about our Equity Advisory services or Carta Total Compensation