For those of us laid off, CVS canceled a batch of restricted stock this month. They are reporting the canceled stock as earned income for the employee. Payroll just says it's not them it's ETrade. ETrade says it's an issue with CVS. CVS is taking no action to correct.
Sounds like fraud to me. Anyone else seeing this?
2 replies (most recent on top)
No, this is different. I think you're referring to stock purchase, not restricted stock.
When you sign up for the stock plan, it says if you separate from the company, you get the accumulated funds returned to you before the scheduled buy date. So that would be regular income subject to tax.
Is that what you are referring?