Print This Page

Date:   09 Oct 2008
From:   TB

Hi,

If an ISO is converted to an NQO, do employment taxes like FICA and FUTA apply when the NQO is exercised?

Answer

Date:   7 Nov 2008

Hello TB,

Yes.

Good luck!

Mike Gray

For more information about incentive stock options, request our free report, Incentive Stock Options - Executive Tax and Financial Planning Strategies.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.