ture, also Social Security & Medicare

On the vest date, the IRS treats RSUs as cash compensation:

• Taxed right away

• Taxed as ordinary income

• Included on your W-2

• Subject to:

  • Federal income tax

  • Social Security & Medicare

  • State tax 

For each share:

Ordinary income=FMV at vest

You owe tax even if you hold the shares and never sell.