RESOURCES

Whether you are receiving your first Bean Stock grant or have received grants over the years, you probably have questions. Understanding your Bean Stock helps you get the most out of it.

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Fidelity resources including step-by-step instructions for your account and tax specific information

 

FIDELITY RESOURCES

As the administrator for our stock plans, Fidelity has a wealth of information to help you understand and manage your Bean Stock.

 
Step-by-step instructions for your Fidelity account (pdfs)
open your account accept your grant(s) sell shares online

Fidelity tax filing guides (pdfs)

RSUs (Bean Stock) Employee stock purchase (S.I.P.)

 

TAX RESOURCES

You are not alone if you find taxation confusing. While we can’t give partners financial or tax advice (everyone’s personal situation is different), here’s a general description of what to expect when your Bean Stock vests.

When your Bean Stock RSUs vest, but before any shares are transferred to you, Starbucks is required to withhold any applicable taxes (Federal at the Supplemental rate, Social Security, Medicare and any state or local taxes).

Enough shares will be withheld to cover the taxes due and the net shares (or shares after taxes) are then deposited to your Fidelity account.

EXAMPLE (for illustrative purposes only)

Let’s say you received 10 RSUs, and one year later when the first 50% (5 units) vest, the closing price of Starbucks stock is $75 and your tax rate is 30%*.

Your taxable income: 5 shares x $75 = $375
Your taxes due: $375 (your taxable income) x 30% (your tax rate) = $112.5
2 shares** will be withheld to cover the taxes due and the remaining 3 shares go into your Fidelity account.

* The example shows estimated tax withholding. For your own personal situation, we encourage all partners to consult with their own tax adviser with respect to local tax consequences in regards to taxation of RSUs at the time of vest.

** Shares will be rounded up to the nearest whole share, and any residual amount from the netting of shares will be refunded to you through payroll. In this case, 2 shares x $75 = $150. You would receive $37.50 back through payroll ($150 in taxes paid in shares – $112.50 in actual taxes due = $37.50 to refund to partner through payroll)

The value you receive from your Bean Stock when it vests will be reported on your W-2 as part of your earnings. Starbucks mails a W-2 to each partner’s home address by January 31 for the previous year’s wages and taxes. You may also opt to receive your W-2 electronically.

EXAMPLE (for illustrative purposes only)

Following the previous example, the value of the total shares ($375), is included in boxes 1, 3 (up to maximum wage base) and 5.

The taxes withheld ($112.50), is included in boxes 2, 4 (up to maximum wage base) and 6. If state or local taxes applied, the value of the total shares is included in boxes 16 and 18 and taxes withheld in boxes 17 and 19.

Starbucks also reports “RSU Gain” ($375) in box 14

If you hold the shares you receive from Bean Stock and do not sell them, the income and taxes have already been included on your W-2, so aside from entering your W-2 information on your tax return, you do not need to report any additional income or taxes separately.

However, if you’ve received dividends on the shares you’ve held, please be sure to read the section below on dividends.

If you sell the shares you received from Bean Stock, you’ll have another taxable event, but it will be handled differently than the taxable event at vest because you own the shares outright. Starbucks has no visibility to this activity because the shares you own are in your personal brokerage account at Fidelity rather than the Fidelity NetBenefits account where your unvested Bean Stock is found.

IMPORTANT: Whether you hold the shares for a day or years after the vest, you will have a taxable event when you sell those shares. Depending on the value of your shares at sale, you may have a gain or a loss to report on your annual tax return.

EXAMPLE of a sale with a gain (for illustrative purposes only)

Let’s say that you decide to sell your 3 shares and the stock price is $85. After the sale, Fidelity will deposit the cash proceeds to your account. 3 shares x $85 (sale price) = $255 less commission/fees

You have already paid taxes on these 3 shares at $75 per share when they vested, so to determine your taxable income at sale, take the sale price minus the original price of your shares (this is usually called cost basis).

$85 (sale price) – $75 (cost basis) = $10 x 3 shares sold = $30 gain to report

EXAMPLE of a sale with a loss (for illustrative purposes only)

Let’s say that you decide to sell your 3 shares and the stock price is $65. After the sale, Fidelity will deposit the cash proceeds to your account. 3 shares x $65 (sale price) = $195 less commission/fees

You have already paid taxes on these 3 shares at $75 per share, so to determine your taxable income at sale, take the sale price minus the original price of your shares (this is usually called cost basis).

$65 (sale price) – $75 (cost basis) = -$10 x 3 shares sold = $30 loss to report

When you sell shares (whether you have a gain or loss), you will need to report this information on your annual tax return.

Your broker (like Fidelity, who sells shares on your behalf) will mail your 1099-B Tax-Reporting Statement and a Supplemental Information Form by mid-February. Forms can also be found in your Fidelity account under Tax Forms. Fidelity publishes a step-by-step guide, to help walk you through the tax filing process.

If you’ve received dividends on your Starbucks shares, this is taxable income.

If you received $10 or more in dividends, Form 1099-DIV, which shows your dividend income to be reported on your annual tax return, will be mailed by Fidelity by mid-February.

For a history of Starbucks dividends, see Dividend & Stock Split History.

Log in to your Fidelity NetBenefits account to find your tax forms. From the Stock Plans summary page, click on the Statements/Records tab and then Tax Forms.

W-2: Wage and Tax Statement

This form is used by U.S. employers, who must file a Form W-2 for each employee from whom Federal or State and local income tax, social security tax, or Medicare tax was withheld.

A copy of the form will be sent to the United States Internal Revenue Service (IRS).

Each year, partners in the U.S. will receive this form from Starbucks for wages paid and taxes withheld.

Income from RSUs (or RSU gains) are reported in Box 14. RSU gains are also reported in Boxes 1, 3 (up to maximum wage base) and 5 and respective taxes withheld and reported in Boxes 2, 4 (up to maximum wage base) and 6.

1099-B: Proceeds from Broker and Barter Exchange Transactions

This form reports proceeds from brokers and barter exchanges to the seller and the IRS.

You may receive this form from Fidelity if you sold shares of Starbucks stock.

Partners will be fully responsible for paying taxes on gains from these transactions.

Supplemental Information

This form provides additional information to supplement your 1099-B due to cost basis regulations that no longer permit brokers to include ordinary income.

You may receive this form from Fidelity if you sold shares of Starbucks stock.

Partners will be fully responsible for paying taxes on gains from these transactions.

1099-DIV: Dividends and Distributions

This form is used by brokers and other financial institutions to report dividends and other distributions to taxpayers and to the IRS.

You may receive this form from Fidelity if you were paid cash dividends for Starbucks shares you own.

Partners will be fully responsible for paying taxes on gains from these transactions.

W-8BEN: Certificate of Foreign Status of Beneficial Owner for U.S. Tax Withholding

This form is used by foreign individuals to certify their non-U.S. status.

Partners outside of the U.S. are required to complete this form when they activate their Fidelity account for the first time, and then again after every three calendar years.

 

OTHER FINANCIAL BENEFITS

Starbucks Stock Investment Plan (S.I.P.) is a quarterly stock purchase plan that allows Starbucks partners in the U.S. and Canada to buy Starbucks stock at a 5% discount. Starbucks partners are eligible to participate after 90 days of service and may contribute between 1-10% of your base pay through regular payroll deductions.

Starbucks partners may enroll, change your contribution percentage or withdraw only during enrollment periods (1st – 15th of March, June, September and December). Changes cannot be made at any other time.

Once you enroll, your paycheck deductions will start on the first payday after the new quarterly offering period begins. Your contributions will be held by Starbucks for the entire offering period. On the last day of the quarter, Starbucks will purchase as many shares of Starbucks stock as possible at the discounted rate and deposit them to your Fidelity NetBenefits account.

If you leave the company prior to a quarterly purchase date, your contributions will be refunded through payroll.

To enroll, log in to Fidelity NetBenefits or call a Fidelity representative at 866-697-1048.

The Starbucks Corporation Employee Stock Purchase Plan Summary (titled S.I.P. Prospectus) and the Starbucks Omnibus Plan can be found at Fidelity NetBenefits by selecting Starbucks S.I.P., then Plan Information.

 

Starbucks Future Roast 401(k) Savings Plan can help Starbucks partners save for financial goals through convenient payroll deductions. Starbucks partners can contribute 401(k) pre-tax or Roth after-tax dollars, and Starbucks will match your eligible contributions.

Partners who are age 18 or older with 90 days of service, are generally eligible to participate in Future Roast 401(k). Shortly before you become eligible, enrollment information containing plan details and instructions is mailed to your home address.

Eligible partners may contribute from 1% to 75% of their pay each pay period, up to the annual IRS dollar limit ($19,500 for calendar year 2021). Partners age 50 and older are subject to a higher IRS annual limit ($26,000 for calendar year 2021).

When you save through the Future Roast 401(k) Savings Plan, Starbucks will match 100% of the first 5% of eligible pay* you contribute each pay period (regardless of whether the contribution is 401(k) pre-tax, Roth after-tax or a combination of both). The Starbucks Match is determined on a pay period-by-pay period basis. For any pay periods that you do not contribute, no Starbucks Match will be contributed. The match is immediately 100% vested. This means you own the matching contributions as soon as they are contributed to your account.

For more details, view the current Future Roast 401(k) Summary Plan Description and Starbucks Match and Safe Harbor Plan Notice.

TO ENROLL

Visit Fidelity NetBenefits. If you are creating a new Fidelity account, you will need to provide your Social Security number, birth date and ZIP code.

For help, call Fidelity at (866) 697-1048 or (800) 587-5282 (Spanish line) to speak with a service representative, Monday-Friday, 5:30 a.m. – 9 p.m. Pacific Time.

FOR ROLLOVERS

If you want to move money from another qualified plan to your Future Roast 401(k), log in to your Fidelity NetBenefits account, select FUTURE ROAST 401K and go to the Rollovers tab.

*​​The maximum amount of eligible pay considered when calculating 401(k) pre-tax and/or Roth after-tax contributions and match for any calendar year is subject to IRS limits ($290,000 for calendar year 2021).

My Starbucks Savings

My Starbucks Savings is an exciting new program to help you prepare for the unexpected and save for an emergency—plus get rewarded for doing it. Through Fidelity Goal Booster you can open and link an account and then set up payroll contributions directly to your goal. Plus Starbucks will give you a boost for reaching key milestones.

For more information, visit MyStarbucksSavings.com.

Starbucks Student Loan Management Benefit

Get help with payment strategies, student loan management coaches and links to take action at Tuition.io.

For more information, visit starbucks.tuition.io.