Taxed at payment.

Taxable amount is amount of the cash payment.

Yes, provided subsidiary bears the cost of award. Written agreement required.

Income Tax:
Reporting and withholding required.

Social Insurance Contributions:
Yes, employee and employer social insurance contributions likely due; however, it is likely the social insurance ceiling will have already been met.

None.

None.

Awards paid in cash through local payroll generally have increased plan entitlement risks, as well as other increased labor law risks such as the need to include amount in termination indemnities, obligation to consult works council, etc.

In addition, the risk of plan entitlement issues increases if awards are granted on regular basis.

Written disclaimer should be included (in English and Spanish) to reduce risk of entitlement.

Federal privacy law enacted in July 2010 requires employers to appoint an individual or establish a data privacy department, inform employees of collection of personal data and obtain consent to processing, disclosure and transfer of personal data.