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Restricted Stock Units (RSUs)

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  • 29-01-2021 7:53pm
    #1
    Pops_20
    Registered Users Posts: 706 ✭✭✭


    Hi All, I have some RSUs given to me by my employer that are due to vest soon. I am a little unclear on how these work.

    I know the number of units I have that are due to vest, and there is a value associated with these based on the value when I received them last year. This seems to be called the "unvested value".

    My question is, when these RSUs vest, I assume I can sell them for the value they currently hold on the market? This value is now higher than when I received them, so I'm trying to confirm how much I will receive.

    Thanks!


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    #2
    FastFullBack
    Registered Users Posts: 1,451 ✭✭✭FastFullBack


    Pops_20 wrote: »
    Hi All, I have some RSUs given to me by my employer that are due to vest soon. I am a little unclear on how these work.

    I know the number of units I have that are due to vest, and there is a value associated with these based on the value when I received them last year. This seems to be called the "unvested value".

    My question is, when these RSUs vest, I assume I can sell them for the value they currently hold on the market? This value is now higher than when I received them, so I'm trying to confirm how much I will receive.

    Thanks!

    I've some vesting as well soon. I got them last March when the stock market was low so the stock was around $35 and is now $70. I have 155 shares divesting in March. I think when they vest some will be lost/sold to pay down an initial tax due.
    Let's say I have 100 left, if I sell at $70 (€57) I'll get €5700 minus fees and CGT tax.

    CGT is 33% of the Profit. Profit is calculated as value at sale price ($70 converted to € multipled by number of shares) minus the value when I got them ($35 converted to € using Fx rate of the date you got the shares)

    This is my understanding, happy to be corrected by better minds on here as I'm learning here as well.


  • Options
    #3
    stronglikebull
    Registered Users Posts: 477 ✭✭stronglikebull


    RSU's are normally taxed at source, and if so you shouldn't have to worry about it. They are taxed as income, at either 20% or 40%, plus USC and PRSI. The price at the time they were granted to you is not relevant, only the price when they vest. At that point, they are income and taxed at whatever rate you pay.



    If you have for example, 100 shares, and are paying income tax at 40%, then you will receive about 48 shares and have no more tax due.



    If you sell immediately, you have no more tax to pay. If you keep them, then any gain they make from the time of vesting to the time of selling is taxed for CGT (less the €1270 allowance if applicable).


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    #4
    Pops_20
    Registered Users Posts: 706 ✭✭✭Pops_20


    Thanks for the replies, I forgot about this thread until my shares vested on Monday.
    @FastFullBuck looking at the share prices you mentioned I think we work for the same company :P

    I had 43 shares, and 23 of them ended up being sold off under something called "Cross Trade Exec on Mult Exchg".

    So about 53% of my shares were sold off, does this equate with the tax I am expected to pay? Didn't think I would lose over half of my shares.


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    #5
    [Deleted User]
    Posts: 5,121 ✭✭✭ [Deleted User]


    Yes that is the rounded tax figure.
    Your employer will report an income of 100% on your payslip, you will be taxed on it as normal income, your employer will use the 53% to pay your taxes, your net pay should be approximately the same as a normal month, the remaining 47% are yours to do with as you please, no further responsibility on the employer.


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    #6
    FastFullBack
    Registered Users Posts: 1,451 ✭✭✭FastFullBack


    Pops_20 wrote: »
    Thanks for the replies, I forgot about this thread until my shares vested on Monday.
    @FastFullBuck looking at the share prices you mentioned I think we work for the same company :P

    I had 43 shares, and 23 of them ended up being sold off under something called "Cross Trade Exec on Mult Exchg".

    So about 53% of my shares were sold off, does this equate with the tax I am expected to pay? Didn't think I would lose over half of my shares.

    :) My shares vested as well Monday so we definitely must be in the same company. And I just checked and over half my shares were sold under the same banner "Cross Trade Exec on Mult Exchg".


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