Stock Plan Solutions/Green Zapato LLC (SPS/GZ) was founded in 2001 by Mary Pat Wood, CPA, CEP and Rick Zatz, CEP. SPS/GZ was formed as a collaborative joint venture from two existing consulting firms (Stock Plan Solutions and Green Zapato Consulting). Both firms have handled stock plan administration consulting projects. However, SPS was focused more on administrative matters while GZC concentrated its efforts primarily in accounting, taxation, financial reporting and regulatory-related issues for equity compensation plans. The formation of SPS/GZ resulted in a best-of-breed, fully comprehensive stock plan administration outsourcing firm.
In 2010, the IRS adopted regulations pursuant to Section 6039 of the Internal Revenue Code, requiring companies to provide stock plan participants with Form 3921 for all Incentive Stock Option (ISO) exercises and Form 3922 upon first transfer of legal title of shares acquired in conjunction with a qualified Employee Stock Purchase Plan (ESPP). SPS/GZ’s stock plan outsourcing clients began inquiring about services for these new tax forms. SPS/GZ wanted to provide a complete solution to their clients and other companies needing this service.
SPS/GZ decided to invest in building a highly secure portal that easily allows exchange of confidential information and feeds into a software program capable of performing data audits and producing forms in an IRS acceptable format. Pairing this technology with an interactive client corrections portal and online data archiving resulted in the most robust platform in the industry. Additionally, SPS/GZ sought out subject matter experts to ensure compliant procedures and sound internal control policies. This successful venture resulted in many clients requesting additional tax form reporting services from SPS/GZ, including 1099 forms and eventually the forms required under the Affordable Care Act. SPS/GZ proudly provides tax form reporting services to hundreds of satisfied clients and entities throughout the United States.
Fun Fact: People always ask where the name “Green Zapato” comes from. It was derived from a "Wall Street term" called a greenshoe (or "over- allotment option"), which gives underwriters the right to sell additional shares in a registered securities offering at the offering price (“zapato" is Spanish for “shoe”). The term comes from the first company, Green Shoe Manufacturing - now called Stride Rite Corporation, to permit underwriters to use this practice in its offering. The name was chosen because of the positive nature of the "greenshoe" option and the quality services, including securities and tax reporting, historically provided by Green Zapato.