My friend has a case of RSU vesting which looks weird to me. Normally when my shares vest, I simply get all the shares on vesting date and then my lohnausweis has value of those shares mentioned as income. However for my friend, following is the case
Quantity released -: 31. Quantity withheld -: 13 , Net quantity= 18
In Lohnausweis, income is reported as value of 31 shares. Lohnausweis has no mention of shares that were withheld as tax.
This means my friend is supposed to pay income tax on value of 31 shares but received only 18 shares in Stock Plan account.
Does it make sense ? How to claim credit for tax that is already withheld?
Info -: Swiss resident, American RSUs awarded as an employee of Swiss subsidiary of US company.
Check the payslips, it was likely reconciled there. When I had RSUs (US tech), they would withhold AHV contributions (and tax at source for those taxed at source), it would appear in the payslip as a negative deduction (“$Broker withholding”).
(so the withheld share sold is already counted in the tax at source number in the lohnausweis)
But the person is on C permit and there is no Quellensteuer mentioned in Lohnausweis. I am wondering if this is case of missing W8-BEN. But the tax % is quite high…so it might be something else
No, W8-BEN shouldn’t matter (it’s for dividend, not for vesting).
Did you check the payslips? Maybe they deduct tax at source for everyone (and then refund it with extra cash on the salary payment).
(yeah if on C permit, it’s definitely much more than what should be deducted)
edit: and if it’s still not explained, I’d suggest contacting HR/payroll.
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I only see lohnausweis. I will ask them to check the monthly pay slip . maybe that has some info. The tax deducted is definitely higher than the marginal tax rate. So its bit weird. Thanks for response.
btw I’d check a few months:
- the month of vesting event
- the one after
- and potentially the extra annual payroll run if they do one (typically you receive it in january to close the previous year)
Yes, that was my thought. The months might not match. Looks like every company does this differently.
Yes, like this.
|It is very confusing but this is what I get with my US tech company RSUs. This changed from a few years ago when the AHV was simply deducted in the paycheck.