I'm reviewing the year to date figures on my last paycheck stub for 2018. There's this entry for
RSU Tax Offset I'm trying to discern here. I can trace it back as a line item of a check stub 6 months after I joined the company which is when the first batch of RSU's were issued. This is also corroborated by another section in the same originating check stub, titled
Other Benefits and Information which lists
RSU Vesting as a line item.
The thing that's confusing is that the RSU Tax Offset is enumerated in the
Additional Deductions section along side other after tax deductions like life insurance, etc. The curious thing is that those other deductions are all given a negative sign to indicate deductions, but the RSU Tax Offset has no negative sign. Can anyone make heads or tails of this? What is an
RSU Tax Offset meant to communicate precisely? What is being offset and why?
I reexamined the check stub that the RSUs vested on, and I realized that the sum of all the taxes paid that check stub were equal to the RSU Offset exactly. So part of the puzzle is explained, it certainly has something to do with taxes due on the RSUs.
The next baffling thing I need to grasp is that the figures for the Total Net Pay on last check stub break down as
Net Pay = (Gross pay) - (YTD Taxes) + (RSU Tax Offset) - (Pre/Post Tax Deductions)
That RSU paycheck has a net contribution of zero in this Net Pay calculation, because the
YTD Taxes break up as
(Salary YTD Taxes) + (Taxes on RSU) and the
(Taxes on RSU) is equal to the