2 relatively similar methods to withhold Federal & State taxes on the vesting & delivery of Restricted Stock Units (RSUs) are Net Issuance & Sell-to-Cover
Based on the following assumptions: 100 shares vested & delivered; the fair market value on the delivery date $50; and the
1. Net Issuance. Companys withholds 40 shares, which provides 60 shares [100 * (1 – 40%)] and no cash to the recipient.
2. Sell-to-Cover. Company sells 40 shares, which provides 60 shares [100 * (1 – 40%)] and no cash to the recipient.
What are the respective entries the Company should book for each of the methods above?
