5 Ways to make Your Tax Communications More Engaging

Different employees have different learning preferences, time constraints and needs. To meet them where they are, consider using multiple formats to share tax information.

• On-demand content could include evergreen explainer videos and FAQs on topics ranging from how equity compensation works to navigating your equity management platform.
•  Virtual and/or in-person live sessions can provide interactive guidance and screen-sharing walkthroughs.

By using feedback forms and analytics to track engagement, you can begin to assess which formats work best for each type of communication, employee segment and region.

Be sure to make your tax communications easy to find as well, rather than burying them at the bottom of an email or sharing them only when employees are hired. Maintaining a regular communication schedule can keep your participants engaged and encourage action when it’s required (e.g., during vesting events).

What are you more likely to remember—a dry explanation or a compelling narrative? While tax rules can be complex, they don’t need to be boring. Some ways to make your communications more engaging include:

• Using simple metaphors, like “shares are the tree, dividends are the fruit.”
• Creating hypothetical scenarios that allow you to explain different tax outcomes in practice. For example, what happens when RSUs vest for a junior employee vs. a highly paid senior manager? What happens when a parent sells shares inside of one year vs. waiting longer?
• Add calculation visuals and country-specific examples to show not just what the tax rules are, but what they mean in practice.

Employees engage more when they feel the information applies to them, but you still need to draw the line between education and advice. Ideas include:

• Explaining how your equity program benefits participants generally, especially if it delivers potential tax advantages.
• Using scenario-based FAQs to help employees understand the tax implications of different trading approaches, while recommending they seek independent advice for guidance on their specific circumstances.
• Offering office hours with external tax advisors who can provide greater clarity and one-on-one support.

One-size-fits-all communications don’t work for global or diverse workforces. To avoid this trap:

• Tailor your messages to local tax environments.
• Aim to send filing reminders aligned with each region’s filing deadlines.
• Use platforms like Global Intelligence to stay notified about changes to country-specific tax rules related to equity compensation.

By providing region-specific tax information, you can help your employees make more informed decisions while fulfilling your role as a responsible corporate citizen, especially in regions like APAC where regulators expect it.  Consult your tax or legal advisor for jurisdiction-specific advice. 

Major tax moments provide optimal opportunities to reinforce financial literacy and encourage employee engagement. To build momentum around these events:

• Use trigger-based reminders (like vesting emails or pre-IPO guides) to direct employees to resources when they care most.
• Track engagement spikes across your intranet, internal chat channels and equity administration platform to measure the effectiveness of your tax communications and improve over time.

If you’re looking for more ways to improve your participants’ tax literacy, reach out to Morgan Stanley at Work to learn how we can help.