Why Your Monthly Stock Vesting Creates a Higher Tax Bill

Episode 57 of The Compensation Podcast digs into a hidden tax trap that catches employees with monthly or quarterly RSU vesting schedules. Lucas and Luna walk through a concrete example: an engineer at a large tech company who vests 12 times a year, triggering higher Medicare surtax thresholds and withholding complications. They contrast this with the more common annual vesting schedule and explain why the IRS treats each vesting event as a separate income trigger. The episode also covers how employers can adjust withholding elections and why employees should consider changing their W-4 to avoid underpayment penalties. No jargon, just a clear explanation of why more frequent vesting isn't always better for your bottom line. #RSU #StockVesting #TaxTrap #MedicareSurtax #Withholding #Compensation #EquityCompensation #RestrictedStockUnits #TaxPlanning #W4 #IRS #TechCompensation #PayrollTax #FexingoBusiness #BusinessPodcast #Careers #Finance #TotalComp Keep every episode free: buymeacoffee.com/fexingo