Disposition Processing

You might want to survey the transfer agents, brokerages, and the optionees to determine if a transaction represents a true disposition or a transfer from one brokerage account to another. You can enter all information received from transfer agents or brokers concerning potential dispositions into the system with a pending status.

When the individual, transfer agent, or broker confirms a disposition, change the status to confirmed. If the disposition is disqualified, you can send the ordinary income to payroll to include it on the individual's W-2.

If you use Payroll for North America, you can automatically send the income information to payroll for processing. If you do not use Payroll for North America, or the optionee is not paid through this payroll system, run the Disqualifying Disposition Payroll report and send it to your payroll administrator for processing. Stock Administration displays the date on which you transmitted the data or ran the report.

Disposition Adjustments and Cancellations

If you must adjust or cancel a disposition after you've sent the ordinary income to payroll, change the status of the transaction to void and add a new disposition to the record. If the disposition was created by a same day sale or sell to cover transaction, make the change using the Exercises or Releases components, as appropriate. If you use Payroll for North America and the transaction has not been processed by Payroll for North America, the system deletes the transaction from the table. You receive a message that the transaction was successfully deleted. If Payroll for North America processed the transaction or you ran the manual payroll report, run the Disqualifying Disposition Reversal report and give it to your payroll administrator.