RSU Entry

Hilarious D.A.D.

Many years of transactions to enter. Never have sold any. Details all look like this and I also have RSU NET DUE EMPLOYEE and RSU TAX OFFSET my paystubs. I have entered 1 grant date and vesting schedule. I see no way to split the categories to accommodate all the details. What is best way to enter RSUs to account for all this?

Hoping to switch from Net Pay to details. I guess the RSU related income shown is still simply income. Should I create custom categories or categorize them to the RSU account?

Is tracking Net Pay and Simple Stock Positions best for Quicken? If I ever sell any the cost basis and such are all shown on brokerage statement and they will issue tax forms and such. Just thought it would be cool to have all the details entered. I don't mind doing the work, just can't see how…

Thank you!

Tom Young

So I take it that the picture that you posted is the information provided by your employer when an RSU vests? If so, that's pretty darn comprehensive!

"Hoping to switch from Net Pay to details."

I'm not sure exactly what you're saying here. Are you saying that "Net Pay" is the only Category that's available when you set up the RSU and how the income associated with the vesting event is to be handled? If that's the case then you need to create a Gross Pay Category or something similar in the file to use. Having set up that other Category it will be available to you.

It's been quite a while since I've played around with RSUs in Quicken, having never actually been granted an RSU personally, but I opened a test file to test an RSU grant and vesting in a current version of Quicken and it does sorta look like having all the details of a vesting event - Gross Salary and tax withholding details - properly recorded by Quicken in the vesting event isn't possible.

If I was to actually have an RSU vest and I wanted to have all the details properly reported in Quicken I guess this is how I'd go about it.

1st, I'd establish that the vesting event creates compensation income in the full amount of the number of shares vested times the value of the stock at vesting. I'd probably establish a new Category titled something like "Taxes on Vesting" or something similar and have Quicken use that Category for the vesting event. Then, using the vesting event date I'd make two entries, both in my checking Account.

The first entry would be a "Deposit" in the full amount of the withholding using that "Taxes on Vesting" Category. The second entry would be a "Payment" in the full amount of the withholding, split among the various taxes actually affected. The net effect is no change in cash in the checking Account and a proper recording of taxes.

Personally I'd never use a Net Pay Category nor would I use Simple investing, but I understand that different folks can take different positions on their use.

Hilarious D.A.D.

Thank you! My comment about switching from Net Pay referred to me having Quicken set to Net Pay Category currently. I am developing more of an interest in recording the details of each paycheck and playing with that. I looking at pay stubs and saw RSU NET DUE EMPLOYEE in EARNINGS section and RSU TAX OFFSET, entered as a positive number, in the ADDITIONAL DEDUCTIONS section. I am to speak with someone next who can supposedly explain this to me.

I am hoping I will be able to tie the amount on a paycheck to a specific RSU release to the penny. I sense that they are trying to compensate for the tax that is withheld by the broker as required upon vesting but I have to admit I AM CONFUSED.

If I can get a grasp of it, I think your description of handling all of it will be helpful.

Wish me luck…

Thank you!

Tom Young

"Thank you! My comment about switching from Net Pay referred to me having Quicken set to Net Pay Category currently. I am developing more of an interest in recording the details of each paycheck and playing with that. "

That's the best way in my opinion.

It sounds to me as the sum of the "RSU NET DUE EMPLOYEE in EARNINGS section and RSU TAX OFFSET" is the Gross Income from the vesting event. If you use the Quicken RSU "wizard" it should present that same number in the Gross Income Category.

Typically taxes withheld at the vesting of an RSU is NOT paid by the broker, it's actually paid by your company. The broker paying taxes would be an somewhat unusual situation.

Basically the process can be viewed in the following fashion:

1. You receive ALL the vesting stock. That's what your compensation is based on.
2. "You" sell some of the stock in order to pay your tax withholding.
3. You have a gain or loss on this "same day" sale based on the actual price you received in the sale vs. the price used by you employer to value the stock and compensation.*
4. The money raised by "your" sale of stock for taxes is passed back to your employer who then uses that money to pay the various taxing authorities.

* This may be a real sale of stock by the broker or a withholding of shares by the company itself that then uses its own money to pay the taxes.

If the stock is actually sold through a broker then you'll get a 1099-B for that sale from the broker and need to report the sale.

Hilarious D.A.D.

Thank you!