Comments on: Restricted Stock Units (RSU) Tax Withholding Choices

By: Steeda

Steeda — Tue, 26 May 2009 19:57:24 +0000

My company was bought by another comapny about 1 1/2 years ago. I was told that to exercise my Stock Options (which are now RSU's) I have to pay my employer the share price * number of shares and then the company that hold s the options will then pay me the going share price.

So they say that I need to send them a check for about 33K and then in about 1 week to 10 days I will get paid 59K. So 59K – 33K = 26K (less with-holdings).

Is this correct?

Seems like one of those internet scams "You pay me 50 bucks and I will send you 100 bucks in return!"

But this is thru my company. Is this really how it is done?

By: RSU

RSU — Thu, 09 Apr 2009 09:08:42 +0000

I got 188 RSU vested last year. Employer sold 71 shares for tax withholding. I am left with 117 shares. Employer shoing 187*29.57=5999.99 income in W2 and tax withholding 71*29.57=2099.99.

I received my 1099 statement from broker. It doesn't mention about 71 shares sold to cover tax on RSU. Do I need to show it in Schedule D ?

By: TFB

TFB — Sun, 05 Apr 2009 04:49:39 +0000

Thank you. Should be Same Day Sale. Corrected.

By: taxmistake

taxmistake — Sun, 05 Apr 2009 04:39:15 +0000

Hi a small typo in the last sentence that confused me.

I chose Sale Day Sale.

By: anonymous

anonymous — Thu, 24 Jul 2008 19:09:27 +0000

On your example of $50 x 100 shares with 40% tax withheld what is the AMT due?
thanks!

By: Anonymous

Anonymous — Wed, 06 Feb 2008 15:23:00 +0000

I'm more interested in this new accounting game corporations are playing. Is this latest maneuver another way for them to continue cooking the books and avoid counting the expense?

Ted

By: TFB

TFB — Wed, 06 Feb 2008 13:21:00 +0000

Fortunately the commission for me isn't that bad. If I transfer the shares out, the market price fluctuation can easily eat up what I save on commission.

By: indexfundfan

indexfundfan — Wed, 06 Feb 2008 09:55:00 +0000

Did you find out the commission to sell? Mine is a ridiculous minimum $50 charge or 6 cents/share. On a RSU vesting of $1000, this is a minimum 5% fee.

I chose to pay the tax and transfer the shares out to sell at WellsTrade (both free).

By: Anonymous

Anonymous — Wed, 06 Feb 2008 06:11:00 +0000

Thanks for this post. My employer just switched to RSUs (away from NQOs), effective 1-1-2008. I got my first award this week, and was trying to make sense of it all.