Maximize Your Equity And Benefits In Tech [Part 5] - Taxes (RSUs/Bonuses)

Many tech employees misunderstand the tax treatment of RSUs, leading to unexpected bills and avoidable penalties. Here are the core points from the lesson:

• When RSUs vest, their value is taxed immediately as ordinary income—similar to receiving a cash bonus
• Default federal withholding on RSUs is typically 22%, which is often too low for high earners, potentially resulting in underpayment pena