Stripe Faces $3.5B Tax Bill as Employees' Shares Expire

Re:Stripe Faces $3.5B Tax Bill as Employees' Shares Expire by xyzzyz on Wednesday March 08, 2023 @11:48PM (#35078407)

Again, you are talking about stocks. Options work completely differently. Unlike with RSUs, you don’t owe any tax on options when they vest, only when you actually exercise. I know how RSUs works, I have actually worked at Google for a number of years. Instead, you should ask someone who works at an earlier stage company how options work.

[ Parent | on HN ]

Re:Stripe Faces $3.5B Tax Bill as Employees' Shares Expire by danielmarkbruce on Thursday March 09, 2023 @12:12AM (#35078512)

Yes, I am talking about stock, in response to:

>> If you hold actual stocks, there is no tax bill until you sell these to realize the gains

There are taxes to be paid as soon as you get the stock. If you are at google - have you noticed the number of RSUs which hit your schwab account are less than those which vested according to that chart in your schedule? That's taxes being withheld. The stock vesting is considered income at that moment and taxed as such.

[ Parent | on HN ]

Re:Stripe Faces $3.5B Tax Bill as Employees' Shares Expire by polishdude20 on Thursday March 09, 2023 @12:49AM (#35078638)

I may be woefully misunderstanding here but say you exercise your options, sell them then get real cash for the sale all in the same day. Can you use that cash to pay your taxes when tax season comes around?

[ Parent | on HN ]

Re:Stripe Faces $3.5B Tax Bill as Employees' Shares Expire by akhosravian on Thursday March 09, 2023 @01:11AM (#35078707)

Yes. The problem is there are various reasons why you can’t just sell stock or an early stage company the same day.

[ Parent | on HN ]

Re:Stripe Faces $3.5B Tax Bill as Employees' Shares Expire by danielmarkbruce on Thursday March 09, 2023 @12:50AM (#35078649)

You can use whatever cash you have to pay your taxes.

[ Parent | on HN ]

Re:Stripe Faces $3.5B Tax Bill as Employees' Shares Expire by kgwgk on Thursday March 09, 2023 @05:55AM (#35080084)

Note that the 3.5bn (withholding) tax under discussion is not about options. It's about RSUs.

(There is also a less important amount of tax due - by more ancient employees - which is about options.)

[ Parent | on HN ]