Patent ID: 8458058

Claim:
A method comprising: receiving, by a computer based system for determining tax liability, first information in response to a recipient receiving proceeds of a deferred compensation award; receiving, by the computer based system, second information of a taxable event in response to the recipient receiving the proceeds from the deferred compensation award; determining, by the computer based system and in response to the recipient receiving the proceeds from the deferred compensation award, location information of the recipient, wherein the location information comprises first location information of the recipient associated with the granting of a deferred compensation award and second location information associated with the recipient receiving the proceeds; characterizing, by the computer based system and based on the location information, the proceeds as at least one of a mobility event and a non-mobility event, wherein in response to characterizing the proceeds as the mobility event, determining a first duration of time where the recipient is subject to a first taxing authority associated with the first location and a second duration of time where the recipient is subject to a second taxing authority associated with the second location; and determining, by the computer based system and in response to the recipient receiving the proceeds, a total tax liability of the recipient comprising a first tax liability associated with the first taxing authority and a second tax liability associated with the second taxing authority, wherein the first tax liability is based on the first duration and a first taxing authority tax rate, and wherein the second tax liability is based on the second duration and a second taxing authority tax rate; and communicating, by the computer based system, the total tax liability of the recipient to a payroll system, wherein the payroll system withholds a percentage of the proceeds associated with the taxable event to satisfy the total tax liability.