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Your Company Withholds 22% on RSUs. Your Real Rate Is Probably 32%.
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Investing··10 min

Your Company Withholds 22% on RSUs. Your Real Rate Is Probably 32%.

RSUs are taxed as ordinary income the day they vest, but your employer withholds at a flat supplemental rate that has nothing to do with your actual bracket. That gap is why so many people in tech get an April bill they did not budget for. There is a second, worse error hiding on the 1099-B.

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