Complicated Restricted Stock Units question

[Russ Smith]

When I started I was granted a given number of stock in RSU's. We got bought out so now the value of the RSU's is fixed at the amount of the buyout. I just passed my first year anniversary so I got paid out the first 25% of the RSU's. Rather than do it as a normal stock sale, they included it as a separate paycheck including social security, medicare etc, stuff you wouldn't normally withold from a stock sale(just capital gains).

For that reason they took just over 40%. My assumption is that this will show up on a W2 end of year as just income, the check actually says bonus not stock sale, so I'm guessing I will get back some of that 40% in income tax refund?

Just curious if that sounds right, everyone is in the same boat so depending on start date people get theirs and suddenly think man that's a lot of tax.I have to assume it will even out in the tax refund otherwise they're going to have some very angry employees because you're losing at least another 10% in taxes maybe more if the 40% held up.

 

[Ouchie-Z-Clown]

I wonder if it was phantom stock?

 

[Russ Smith]

I wonder if it was phantom stock?

Yeah I don't know I've never had RSU's before but it seems strange to me they were able to convert it like that. For example. the deal was 12 months to get 25% vesting, then after that, you vest 1/twelfth of your annual total every month. So I should be able to sell every month and get that money. Instead, I have to wait until May for the next 6 months, it vests monthly but I can only cash in every 6 and it's not a sale it's automatic. in fact Trinet literally calls it a bonus not a stock sale.

I don't think I'm actually losing any money this way but it does seem worse because of the higher upfront tax