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I’m still here but yes you do
Here's the formula:
Your Anna Salary / (52 weeks X 40 hours) X your vacation hours!!
^^^ And it doesn't matter how it's taxed right now... Tax day in April should rectify any wrongs. We all (well most of us) pay taxes on our full year earnings. Period.
Yes got it on my last day
Yes, got it pretty quickly via direct deposit after my last day
Don't forget it gets taxed as a bonus
How is it paid out? I mean, does 80 hours of pto equal one pay check amount?
Why would it get taxed as a bonus???? Are you sure about this? So, if instead I just gave my last official day as 3 weeks later and took the last 3 weeks as pto, you are saying it would be taxed normally instead?
TC1 there’s more withholding yes, but that doesn’t mean you have a greater tax expense. To C1’s point, things balance out come tax filing time (e.g., potentially greater refund)
When you leave they lay out in your separation terms how your unused PTO gets allocated to you. There is a tax (I️ believe mine was 25%) but it also may vary by the state you live in as sometimes individual states have their own labor and employment laws specific to the state
Yup same! They tax it at a slightly higher rate (not much) because it is not considered regular income