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Being paid in equity is just plain annoying. It makes your taxes far more complex and, at least at Google) unless you set up an autosale program a year in adv
by drewg123 11y ago
Being paid in equity is just plain annoying. It makes your taxes far more complex and, at least at Google) unless you set up an autosale program a year in advance, your money is tied up in company stock until the next trading window.
The taxes on equity are a huge PITA when equity is a large fraction of your salary. This is because they withhold at only 25%, even if your tax bracket is higher. This means you have to file quarterly estimated tax payments or over-withhold from your salary.
I much prefer Netflix, where I just get salary. I might even be able to do my own taxes again!
- rco8786 11y agoI'm painfully aware :)
- vasilipupkin 11y agoPerhaps I am missing something, but the idea behind getting paid partially in equity is that your total compensation is higher.
- rco8786 11y agoAs long as the company('s stock) is doing well, yes. But it's also a tax hassle...though it's hard to complain about it.
- domdip 11y agoDid you consider simply skipping estimated payments and paying the interest? It's only 3% above the federal funds rate. (Historical real return on equities is usually computed to be higher.) Or a hybrid (pay a reasonable amount in estimated taxes but don't put any serious effort into getting it exact).
- tamana 11y agoParent poster is being silly. It's trivial to withold some money for taxes. The pain is in calculating get your 1099 because the stock brokers get it wrong evey year, often more than once .
- ryandrake 11y agoAnyone finding their $200K in tech company equity to be a big pain in the ass should feel free to send it to me. I'll grudgingly bear the burden for you. Sheesh!