Yesterday, I blogged on the question that many companies are asking: can we amend our Stock Incentive Plan to allow tax withholding above the minimum required level—up to the maximum statutory rate?
My short answer was that it depends on the language of the Stock Plan. However, a few alert readers suggested that I also point out another important part of this analysis, which is that ASU 2016-09 states that a company that adopts the provisions of the ASU before the 2017 fiscal year must adopt all of the amendments made by the ASU. That is, a company could not apply an amendment to allow tax withholding up to the maximum statutory rate unless it applies the change to future accounting for tax deductions attributable to current equity awards and other ASU 2016-09 changes. Companies should double-check with their auditors as to when these amendments should be adopted and applied.