Yes, every time I exercise NQSO, a paystub is sent to me and tax is withheld. I also get a paystub when exercising ISO, although no tax is withheld. It is actually more chore for me because I need to keep track of the gain and send estimated tax (I only do same day sale, the only sane option in my opinion). The article is very misleading to imply stock option is tax free. Techcrunch never grant her any stock option I figure.