are RSU taxes paid by facebook or employee?
Mar 27, 2020
11 Comments
lets say im granted 100 shares of facebook every quarter. am i right in assuming that facebook picks up the tax liability so those 100 shares are mine tax free? (assuming the grant price and stock price are exactly the same)
follow up: lets say i was gifted them at $10 per share, theyve since risen to $25. im then on the hook to pay short term gains on the additional $15 per share if i hold less than a year or long term gains tax if held for more than a year. correct?
comments
Follow up: whatever price theyre at at vesting is whats counted as income. If youre granted 100 shares at $10 and when they vest they are each 50$, you will pay regular income tax of $5000. If you do not immediately sell then your short term/long term scenario becomes true on whatever profit you may or may not make after
The actual tax rate is determined when you file your taxes.
It's your income, it's your duty to pay the income tax, not the company you working for