Just to clarify why I think employer should pay this as W2:I was granted the options as part of W2 salary, and I earned about 90% of this stock while I was full-time employee just like I earned my cash wage. So it feels to me the company is trying to relief itself from W2 withholding using the excuse that I worked as a contractor for 5 months out of the 41 months I worked for them. At least to be fair they should pay W2 for the share of stocks that vested for as full-time employee and I should pay SE taxes for stock vested as contractor.
