Pay tax at sell not on vest option for MSFT RSUs?

Oct 22, 2021 15 Comments

I know AMZN has this option where they can choose to defer paying taxes on their stock vest. Do we have a similar option at Microsoft?
It sucks to have to receive only partial RAUs at vest & lose some in the form of taxes upfront. Any workarounds?

comments

Want to comment? LOG IN or SIGN UP
TOP 15 Comments
  • Amazon
    DashMash

    Go to company page Amazon

    DashMash
    At amazon you don’t defer taxes … you pay them upfront to keep the stock rather than sell them a keep the cash. Meaning you transfer cash to pay taxes at vesting to keep the stock.
    Oct 22, 2021 2
    • transfer cash from where? base salary?
      Oct 22, 2021
    • Amazon
      DashMash

      Go to company page Amazon

      DashMash
      Your brokerage account or the company that has the custody will provide you an estimate of the taxes, then you move money from your bank account to their account, then they will report it to IRS and give you documents for taxes. Fidelity is my broker.
      Oct 22, 2021
  • Oracle
    ejVP37

    Go to company page Oracle

    ejVP37
    We have this option for Oracle (we use fidelity netbenefits) where we can either have RSUs withdrawn at vesting to fulfill tax commitments, or pay the tax only on liquidation.
    Honestly though, how does it make a difference? Isn't it almost the same either way?
    Oct 22, 2021 3
  • You need to open a brokerage account and then transfer money from your checking or savings account into the brokerage account..cash from brokerage account is deducted if you don’t want shares to be sold at time of vesting for tax purposes
    Oct 22, 2021 2
  • “I know AMZN has this option where they can choose to defer paying taxes on their stock vest.” They may be able to defer until year-end by lowering the withholding, but NOT until sell time. Vesting of RSUs is a taxable event regardless of where you work.

    Paying taxes on vested stock on the same year is a IRS thing, not a Microsoft or Amazon policy. You can’t defer taxes until you have to SELL. Most plans sells a portion of your vested stocks to cover your tax liabilities (sell to cover). Some plans (MSFT included) allow you to adjust the withholding but you still have to true it up at the end of the year and pay the differences by next April 15. If the calculations shows you’ve underpaid by too much during the year, you’ll have to pay not just the due taxes but also a underpayment penalty.
    Oct 22, 2021 1
  • NVIDIA
    ShieldTV

    Go to company page NVIDIA

    ShieldTV
    It’s a NOP. Taxes are due at vesting one way or the other.
    Oct 22, 2021 0