Help with Irregular Vesting Schedule for ESOG

edited January 28 in Investing (Windows)
Having problems entering irregular vesting schedule for my Employee Stock Options (technically they are RSU). 

I was granted 170 shares of stock on 9/15/2015. Vesting schedule is as follows:

9/15/2016 - 5%
9/15/2017 - 15%
3/15/2018 - 20%
9/15/2018 - 20%
3/15/2019 - 20%
9/15/2019 - 20%

Quicken help is telling me to use the Enter Transaction and create a new grant three separate times. One for the 5%, one for the 15%, and then one for 20%. Does that sound right? It is then adding three separate grants, when it is actually one grant with variable vesting schedule. 

I was also awarded a new grant in 2018 for 20 shares that vests 50% in 2020 and 2021. That one is easy to do.

Also need help with the following. When my shares vested, it shows up as income on my W2 and shares are sold to cover taxes. How would I enter the flow of net proceeds from the brokerage account into my paycheck for that period? I assume I would split the transaction for that pay period and then have it transferred from the brokerage account?

I have already followed some previous articles on entering $0.0001 as the grant price of the stock, since it is an RSU. And I had successfully created a similar brokerage account a few years ago with a single grant of 170 shares and variable vesting schedule,  but I created a new Quicken file from scratch and now I cannot seem to replicate.

Thanks

Comments

  • Tom YoungTom Young SuperUser ✭✭✭✭✭
    edited January 27
    I see nothing wrong with setting up the one grant as 3 different grants to accommodate the vesting schedule.  The first grant would have one 100% vesting date for whatever 5% of the original grant was, the next grant would have one 100% vesting date for 15% of the original grant, and the last grant would have 4 vesting dates for 25% of 80% of the original grant.  That should work.

    I've never has an RSU so I've never set one up in Quicken.  It does appear that you do need actually "exercise" a vesting RSU in Quicken to trigger the _EmpStkOpInc.  That's one difference between a "regular" NQSO and and RSU; with an ordinary NQSO it's the exercise that creates compensation while with an RSU it's the vesting that does it.  So you'll need to "exercise" (at that fraction of a cent) a vesting to generate the compensation.

    I don't think I'd try to mess with any "paycheck" entry you try to do in Quicken as it doesn't seem necessary.  I'd simply enter the sale of the shares "for taxes" as a regular sale, then expense the net cash (after brokerage fees) to whatever payroll tax categories are appropriate, zeroing out the cash in the Account. 
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