3 ms·
More stocks are actually favorable over cash to avoid Medicare and SS taxes which are approximately 15%. To me, this seems like a strategy to counter the volati
by internetting3 5y ago
More stocks are actually favorable over cash to avoid Medicare and SS taxes which are approximately 15%. To me, this seems like a strategy to counter the volatility in the stock market and it gives Amazon a way to exit equity based employee retention.
- kyawzazaw 5y agoAren’t RSU taxed as income tax anyways?
- tfehring 5y agoRSUs are still subject to FICA taxes, see e.g. [0] and [1]. Also, most tech workers are above the income limit for Social Security taxes, so their marginal payroll tax rate is only 2.9%. [0] https://www.foley.com/en/insights/publications/2020/08/restricted-stock-units-10-fast-facts https://www.foley.com/en/insights/publications/2020/08/restr... [1] https://www.mayerbrown.com/en/perspectives-events/blogs/2020/08/irs-updates-guidance-on-timing-of-wage-and-fica-withholding-for-stock-options-and-rsus https://www.mayerbrown.com/en/perspectives-events/blogs/2020...