Pay upfront payroll taxes on company stock issued as compensation?

[MaxPowers]

My company has offered me $10k in company stock as additional compensation. I'm told that i will need to pay all taxes upfront as it is taxable income. Per their calculations, it is $3,943 in up front taxes( or 39.43% of stock valuation ).

Hoping someone could help me understand if this seems accurate. I still come out ahead to start and the stock value has seen a stable and consistent growth each year. Just trying to understand:

1) if, in general, this seems right
2) if there is any way to reduce the taxes owed up front
3) for tax purposes later when sold, is $10k my cost basis or the is $6,056 my cost basis ( the amount after proposed up front taxes are paid ).

Federal taxes are listed at $2,200 owed, so it does appear that the proposed taxes are based off the correct tax bracket for me for 2018 ( 22% ).

[MDM]

1. If the state tax on supplemental wages (google those two words if unfamiliar) is 39.43% - 22% - 7.65% = 9.78% then it seems right.
2. No.
3. $10K.  Be aware, though, Your 1099-B form for an ESPP sale will probably be wrong in case that applies.

[MaxPowers]

Thanks.

The link posted is a lot to review, but quite helpful.

This link was posted in that thread too which helped to summarize things:  http://fairmark.com/compensation-stock-options/tax-reporting-equity-compensation/reporting-sales-nonqualified-option-stock/

[HockeyMan]

My company does this as well. In my experience in Washington and WV, I pay taxes on the 10k up front when the stock vests. Once sold, I'm only subject to taxes on the capital gain.