Throughout my 5 years at Amazon, the taxes associated with Amazon’s RSU compensation were commonly misunderstood. This post will hopefully allow you to understand the basics around each situation. Is my RSU treated as ordinary income or capital gains income? The cash amount of the RSU at the time of vest, is considered ordinary income,
You’ve finally reached your RSU vesting date, now what? In this post we will review the three “Release Methods” with which you can have your RSU’s be processed as. Each option can change how you receive the RSUs and how much tax will be withheld from the award.
Many large tech companies like to compensate their employees through other means than the normal regular recurring paycheck or base pay. One of the most common ways to do this is through the Restricted Stock Unit or RSU. An RSU is compensation in the form of company stock. RSU’s will be set up on a vesting schedule, which determines when the shares will actually become yours.