How Restricted Stock Units Get Taxed on Departure

If you leave a job with unvested RSUs, many people assume you walk away with nothing. But a small but growing number of companies now use 'accelerated vesting upon termination' provisions for certain departures, especially layoffs. This episode walks through the tax mechanics: when vesting triggers income, how the company calculates withholding, and why the timing of your departure date can shift thousands of dollars in tax liability. We look at a case study: an engineering manager at a mid-cap tech firm who was laid off in April 2026, with 400 RSUs scheduled to vest in June. Her company accelerated vesting to the termination date. The difference in tax outcome? Roughly $4,200. We also discuss what to ask HR before signing a separation agreement and how to plan for the tax bill when accelerated vesting lands in a single paycheck. #RestrictedStockUnits #RSU #EquityCompensation #StockVesting #AcceleratedVesting #LayoffTaxes #TerminationTax #SeparationAgreement #EquityTax #StockCompensation #PayrollWithholding #TaxPlanning #Careers #FexingoBusiness #BusinessPodcast #CompensationPodcast #TotalComp #EquityGrant Keep every episode free: buymeacoffee.com/fexingo