New York Supplemental Tax Regulations for Stripe RSUs
New York State Department of Taxation and Finance applies statutory supplemental withholding. For New York City residents, combined state and local marginal rates can exceed 14.77%, causing a severe gap between statutory sell-to-cover and true combined liability.
New York Safe Harbor & Underpayment Penalties
Requires quarterly IT-2105 filings when tax withheld is over $300 below true tax.
Employer Stock Plan Specifics: Carta / Morgan Stanley at Work
Stripe employees with settled RSUs or participating in internal secondary tender offers face tax withholding at 22% statutory rates. Because shares are illiquid outside tender windows, underwithholding is hazardous: you cannot easily sell additional shares later to satisfy your April IRS obligation.
When vesting at Stripe, Carta / Morgan Stanley at Work calculates automatic sell-to-cover withholding using New York's statutory supplemental rate of 11.70% combined with the federal supplemental rate (22% on up to $1M). Because top earners in New York reach marginal brackets exceeding these rates, you will face an incremental shortfall on April 15.
Localized CPA & Advisory Referral
Advisor Guidance: Consult a New York Tri-State CPA specializing in NYS Form IT-2105 and NYC local tax equity withholding safe harbors.