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Except most companies (including Google) withhold supplementary income at 22% federal plus FICA, regardless of whether your marginal bracket is 22% or 35%+. Us
by dmoy 8y ago
Except most companies (including Google) withhold supplementary income at 22% federal plus FICA, regardless of whether your marginal bracket is 22% or 35%+.
Usually this results in significant underwithholding on RSU for federal tax.
- usaar333 8y agoYup, had this exact fear during my IPO. Fortunately, stock went up, so it was a win that I was underwithheld. I was and continue to be surprised companies release RSUs at IPO and not lock up expiry, the later of which avoids the tax risk.
- acchow 8y agoCan you ask your employer to increase their RSU withholdings?