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Not necessarily. My husband’s company that I was referring to was publicly traded, although much smaller than Google or Facebook. They took care of payroll ta
by NeptuneNancy 7y ago
Not necessarily. My husband’s company that I was referring to was publicly traded, although much smaller than Google or Facebook. They took care of payroll taxes due on the value of the vested stock; we paid the income tax to the IRS quarterly. The value of the stock was included in his W2, however if we waited until we filed our taxes we would have incurred penalties, on top of a hefty tax bill.
Companies like Google may handle things differently, and companies that deal in RSUs may as well. My point still stands that you need to understand the tax implications of your offer.
- dharmon 7y agoFair enough. I'm only familiar with the big tech companies and a few of the smaller ones. Although I'm surprised your husband's brokerage did not have this option for you.
- pxx 7y agoThey can't. withholding amounts are fixed by the IRS, at 22% below 1 million dollars, 37% above
- NeptuneNancy 7y agoMy husband’s unvested shares were held by a transfer agent, where they remained once they vested, until we requested they be transferred to a broker. (Not that I’ve ever had a broker withhold taxes, but those would be capital gains anyway.) Taxes incurred upon vesting are income taxes. Even if it’s not cash in your pocket, Uncle Sam wants his cut!