ner’s Perspective: retirement Stock Unit Awards
Restricted Stock Units (RSUs) are a popular form of equity compensation that employers use to reward employees, align their interests with those of shareholders, and retain top talent. However, RSUs come with unique taxation challenges for U.S. employers and employees, especially when the units are set to vest before the recipient’s retirement.
R estricted Stock Units (RSUs) are a popular form of equity compensation that employers use to reward employees, align their interests with those of shareholders, and retain top talent. However, RSUs come with unique taxation challenges for U.S. employers and employees, especially when the units are set to vest before the recipient’s retirement.
One particular area of complexity involves the application of Federal Insurance Contributions Act (FICA) taxes, which include Social Security and Medicare taxes. Taxation Basics of RSUs RSUs are generally not taxable when granted. Instead, they are taxed when they vest and become the employee’s
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ISSUE 9 GLOBAL PAYROLL MAGAZINE
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