Sell-to-cover

Your employer sells some vested shares to pay withholding tax, you keep the rest.

is a common settlement method. When , the company sells enough shares to cover estimated federal, state, and payroll , then deposits the remaining shares in your brokerage account.

pays , it does not guarantee your full tax bill is covered. Supplemental rates may be lower than your actual .

Shares sold for still count toward your total economics. The wage income is usually based on the full value, not just the net shares you receive.

Related terms

Educational definition only. Your grant documents, employer payroll, and tax forms control your situation.