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The employer medicare tax doesn’t max out. The employee gets most of the benefit of RSU’s. They’re taxed as cap gains, maxing out around 23% while cash is taxe
by 0xEFF 7y ago
The employer medicare tax doesn’t max out.
The employee gets most of the benefit of RSU’s. They’re taxed as cap gains, maxing out around 23% while cash is taxed at the marginal rate, closer to 50% all in with state and federal and a FAANG salary.
- et-al 7y agoPretty sure RSUs are taxed as income when they vest. The employee has the option to automatically have a portion of those RSU withheld for tax purposes. Then when the employee sells the stock, the diff from vesting price is naturally taxed as cap gains/losses.
- 0xEFF 7y agoYou’re correct, Schwab says they’re “almost always” taxed at vesting.