3 ms·
[EDIT]: I misread the bill, ignore this comment :) So, the devil here is in the details: https://www.congress.gov/bill/114th-congress/house-bill/5719 https://w
by Eridrus 10y ago
[EDIT]: I misread the bill, ignore this comment :)
So, the devil here is in the details: https://www.congress.gov/bill/114th-congress/house-bill/5719 https://www.congress.gov/bill/114th-congress/house-bill/5719
The tax bill will come due when the employee leaves the company; so this doesn't really help a lot.
Has a few caveats that make it inapplicable to early employees too.
Interestingly, it seems like it applies to stock, not just options, which if it didn't come due when you left the company, would be great since it would mean that startups could stop dicking around with options for tax reasons and just issue RSUs.
- rrhyne 10y ago> The tax bill will come due when the employee leaves the company; so this doesn't really help a lot. I don't see where this is the case. In fact, it's against the spirit of the original proposal. Can you point to where you read this?
- Eridrus 10y agoI think I misread the bill, the part that I saw was "The employee may defer the inclusion of income from the stock until the year that includes the earliest of the dates on which... the employee becomes an excluded employee", I'll go update my original comment. Still, the conditions when the tax bill is due are unclear, e.g. what does "seven years have passed after the rights of the employee in the stock are transferable or are not subject to a substantial risk of forfeiture, whichever occurs earlier" mean?
- rrhyne 10y agoIANAL! Thanks for editing your earlier comment.