I received my RSUs with deductions for Social Security and Medicare but no taxes were held for Fed or State. W2 also doesn't reflect income from RSU. What should I do?

[zhuqinchao]

My first year RSUs vested last June 30th, 2015 and was paid out to me via normal direct deposit. After checking the pay stub, I noticed that only Social Security and Medicare deductions were much higher than my previous pay stubs, but Federal and State taxes stayed the same. Does this mean that no Fed or State taxes were withheld?

On my W-2, the Box 1 for wages also does not seem to reflect the amount of RSUs received either. Also, the Box 5 for Medicare Wages and Tips is much higher than Box 1 but I'm not sure if this is expected.

What should I do now regarding the RSU income?

[JuttaS]

Normally employers include the market value of the shares at vesting in Box 1 and will also withhold federal and state taxes. This income is also subject to SS and Medicare withholdings.

Without knowing much more, it sounds like your employer did account for the vesting in SS/Medicare but didn't include it in Box 1 nor withheld the fed and state taxes. I'd check with my payroll department to find out what's up -- doesn't sound right to me.

If you just got your w-2, they may send another one that just reports the box 1 income and withholdings... again, I'd just check with them to find out how they will handle the vesting income and withholdings.

[zhuqinchao]

Okay, I will contact my Payroll and check to see what to do next. Thank you!

[zhuqinchao]

I checked with our Payroll and they said that they are not comfortable issuing an amended W2. What does that even mean?