My Restricted Stock Units were included in my Income on my W-2 (Box 1) and End of Year Paystub. However, my company also deducted from my paystubs a substantial amount as After-Tax Deductions. I do not see this amount on my W-2. I'm just trying to figure out what that offset was.. It was Restricted Stock Net Gain After-Tax Deduction and RSU Vest Net After-Tax Deduction. Thank you for your help!
When RSUs vest, the value at the time generally becomes taxable income for you (if they aren't tax-exempt for some reason), and your employer is responsible for withholding tax just like with normal income. Often, what employers do is to make a rough guess about the tax liability and directly sell some of your RSUs to pay that liability, and give you the rest of them.
They then need to report what happened on the W-2. The way they do this is to report the total value of the RSUs as gross (pre-tax) income, the value of the RSUs they actually delivered to you as a net (post-tax) deduction from the payslip because you received them as shares instead of cash, and the value of the RSUs they sold as a tax withholding. These numbers gets added to the rest of your income figures for the year and any inaccuracies in the withholding will be corrected when you work out your final tax for the year.