patrick.net

http://dealbook.nytimes.com/2012/09/10/why-facebook-is-paying-the-tax-tab-on-employee-compensation/

Facebook had granted to employees over the years. It's odd timing for a tax bill. Why would Facebook, not the employees, owe tax on compensation income? The short answer is that Facebook isn't really paying tax. It's just remitting the tax on behalf of the employees. Restricted stock units are a form of equity compensation similar to restricted stock. Instead of giving the employees stock, Facebook made a contractually binding promise to give them shares later, after the I.P.O. Facebook is now “net settling” the restricted stock units by withholding the amount of tax due at an estimated combined federal...