The company I work for was recently sold. As part of the buyout, non-qualified stock options held by certain employees were exercised and sold immediately to the buyer. Since multiple employees were exercising their options, this was handled by the finance departments of my company and the buyer.
My gross payout (share price less option price + fees) was paid out via a standard payroll statement as a "non-qualified stock options" line item. Taxes were deducted from this payout at the same income tax rates I see on all pay statements (e.g. 7.65% Social Security tax, 2.5% city tax, my usual state tax rate, etc.).
So now I have a net payout amount sitting in my bank account, and I'm concerned I may have additional taxes to account for when I file next year. I haven't been able to find much information on how non-qualified stock options should or shouldn't be treated as income tax - most articles mention capital gains tax.
Are the income tax deductions already taken out of my NQ options payout adequate and appropriate? Are there any potential extra taxes on this income?