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by internetting3 1594 days ago
More stocks are actually favorable over cash to avoid Medicare and SS taxes which are approximately 15%. To me, this seems like a strategy to counter the volatility in the stock market and it gives Amazon a way to exit equity based employee retention.
2 comments

RSUs are still subject to FICA taxes, see e.g. [0] and [1]. Also, most tech workers are above the income limit for Social Security taxes, so their marginal payroll tax rate is only 2.9%.

[0] https://www.foley.com/en/insights/publications/2020/08/restr...

[1] https://www.mayerbrown.com/en/perspectives-events/blogs/2020...

Aren’t RSU taxed as income tax anyways?