❓ Did you know that when your Restricted Stock Units (RSUs) vest, there’s a hidden surprise waiting for you? ❓
Imagine this: You’ve put in the effort, your RSUs have finally vested, and you’re ready to enjoy your new shares. 🎉
But hold on! There’s an important detail you need to be aware of—taxes! 📉 When those shares vest, they trigger mandatory tax withholding, meaning your windfall might come with a bill.
Here’s how it works: Once an RSUs vest, the IRS classifies this as supplemental income, subjecting it to specific tax rules.
Typically, around 40% of your newly vested shares may be sold automatically to cover federal and state taxes, as well as Social Security and Medicare.
So instead of a full stack of shares, you might only see about 60% in your brokerage account. Surprise! 😲
This tax obligation can catch many employees off guard, especially in higher tax brackets.
But by staying informed and planning for this deduction, you can make smarter financial choices. 🧠💰
Employers have a role to play too! Clear communication about RSUs and their tax implications empowers employees to navigate their compensation with confidence. Transparency is key! 🔑
Want to learn more about RSUs and how to maximize your equity compensation?
Tune into our latest podcast episode where we break it all down for you! 🎙️✨
#EquityCompensation #RSUs #taxwithholding #financialliteracy #podcastepisode
Follow for more!
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Listen to the full episode here:
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YouTube:
https://youtu.be/CgQZW0Ma8kg
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Audio Podcast:
https://www.techequityandmoneytalk.com/rsus-and-equity-compensation/
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