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Restricted Stock Awards (RSAs) can be a valuable part of your compensation package. Here's what you need to know: 📊 - Tax Treatment: Ordinary income - Tax on Grant Date: Not as a default, but recipient can file 83(b) tax election and pay tax at grant instead of release - Tax on Vest: Yes, on the fair market value at vest (exact time typically defined in the plan documentation, for example “close of day prior to vest”) less any price paid for the shares (typically $0 for RSAs), unless release is deferred or participant filed an 83(b) - Note: When release is briefly delayed for administrative convenience, fair market value at vest is used for tax purposes as opposed to fair market value at release  - Tax on Future Sale of Security: Yes (short or long-term capital gains), on the difference between the fair market value at the time of sale - fair market value at the time of vest - How Much Tax Paid: Federal 22% if < $1MM, otherwise 37% - Tax Reporting Form: W-2 for employees, 1099-NEC for non-employees - Tax Deduction: Corresponding to amount reported as employee’s income Make informed decisions about your RSAs and plan for your financial future. Contact us for guidance! #RestrictedStock #EmployeeBenefits #TaxPlanning

Restricted Stock Awards (RSAs) can be a valuable part of your compensation package. Here's what you need to know: 📊 - Tax Treatment: Ordinary income - Tax on Grant Date: Not as a default, but recipient can file 83(b) tax election and pay tax at grant instead of release - Tax on Vest: Yes, on the fair market value at vest (exact time typically defined in the plan documentation, for example “close of day prior to vest”) less any price paid for the shares (typically $0 for RSAs), unless release is deferred or participant filed an 83(b) - Note: When release is briefly delayed for administrative convenience, fair market value at vest is used for tax purposes as opposed to fair market value at release  - Tax on Future Sale of Security: Yes (short or long-term capital gains), on the difference between the fair market value at the time of sale - fair market value at the time of vest - How Much Tax Paid: Federal 22% if < $1MM, otherwise 37% - Tax Reporting Form: W-2 for employees, 1099-NEC for non-employees - Tax Deduction: Corresponding to amount reported as employee’s income Make informed decisions about your RSAs and plan for your financial future. Contact us for guidance! #RestrictedStock #EmployeeBenefits #TaxPlanning

Incentive Stock Options (ISOs) offer a unique tax advantage if you meet certain IRS requirements. 🌟 Key points: - Tax Treatment: Long-term capital gains rate if qualifying disposition, else ordinary income but no social taxes due - Tax on Grant Date: No - Tax on Exercise: No  - Tax on Sale of Security: Yes  - If qualifying disposition: long-term capital gains on difference between sale price and exercise price and possible AMT if qualifying) - If disqualifying disposition: ordinary income  - Tax Reporting Form: W-2 and Form 3921 - Tax Deduction: If a disqualifying disposition, tax deduction equals amount reported as employee’s income, no deduction if a qualifying disposition The application of long-term capital gains rates instead of ordinary income tax rates can result in significant savings for your employees Optimize your tax situation with ISOs. Reach out to learn more! #EquityCompensation #TaxStrategy #StockOptions

Incentive Stock Options (ISOs) offer a unique tax advantage if you meet certain IRS requirements. 🌟 Key points: - Tax Treatment: Long-term capital gains rate if qualifying disposition, else ordinary income but no social taxes due - Tax on Grant Date: No - Tax on Exercise: No  - Tax on Sale of Security: Yes  - If qualifying disposition: long-term capital gains on difference between sale price and exercise price and possible AMT if qualifying) - If disqualifying disposition: ordinary income  - Tax Reporting Form: W-2 and Form 3921 - Tax Deduction: If a disqualifying disposition, tax deduction equals amount reported as employee’s income, no deduction if a qualifying disposition The application of long-term capital gains rates instead of ordinary income tax rates can result in significant savings for your employees Optimize your tax situation with ISOs. Reach out to learn more! #EquityCompensation #TaxStrategy #StockOptions