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Technology Stocks : All About Sun Microsystems
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To: Charles Tutt who wrote (50675)7/24/2002 6:54:35 PM
From: DiViT  Read Replies (1) of 64865
 
"the employee has income of their fair value"

When do the income taxes get paid?

Hypothetical:
Let's say you are a smart person who get's hired by Sun.
On your one year anniversary, they reward you for the fantasic increase in revenue your department had, with a $10k cash bonus and because they want try to get you to stick around, they give you $100k (FMV that day) of stock options that vest over 5 years.

Assuming your in the 30% bracket how much income taxes would you expect to have deducted from your paycheck on that payday?
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