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NQSO, tax withholding and safe-harbor

 

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Subject Author Date
NQSO, tax withholding and safe-harbor Pee Nut 08-20-2008
Posted by Pee Nut on August 20, 2008, 12:52 am
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As I understand, the IRS requires that employers withhold taxes when NQSOs
are exercised. I'm curious if this rule stands when an employee ceases to
be an employee (non-employee) and exercises any remaining vested shares
under the terms of the option agreement. If the exercise happens in the
next year, then would it possible to take advantage of "safe-harbor"?

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