Is PTO at PwC paid out at the same rate as regular pay? So 100 hours of PTO should be 2.5 weeks pay?

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Withheld at a higher rate... not taxed at a higher rate.

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Yes... PTO = Paid Time Off

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Dude, it’s not taxed higher.

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Ugh PTO^ lol

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It was withheld at a higher rate, if that's what you mean.

I'm not trying to sound like a dick when I say this, so please don't take it the wrong way, but a lot of folks on this thread would do well to spend some time reading a little bit about taxes and withholdings - whether on the IRS website or Intuit's help and support pages. This is stuff everyone really ought to know, so you know what to expect in certain situations (e.g. Withholding on supplemental income) and how to avoid paying more tax than you should be paying. It's boring reading, but in my opinion, well worth the couple of hours spent.

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Learn the difference between withholdings and taxes.

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PTO payout at most companies is categorized as "Supplemental Income", so it is taxed at higher rate

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So you will only see about 60% of the gross

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@kpmg1- you are correct

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BCG1 I was about to make the same comment 👌

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Got it. Bottom line, you will not see the equivilant of of 2.5 weeks pay.

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@BCG do you mean that PYO pay will be returned in our taxes (specifically referring to the withheld amount, above our normal rate)? I recently left Deloitte and got paid out (obvi lower than my normal pay)

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PYO^

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Vacation is used in a LIFO method so vacation you most recently accrued gets used first. Meaning that your payout may be at a much lower rate than your current salary.

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^ always wondered about this, is it true? I've carried PTO hours since I was making 1/3 of what I make now. So when I quit am I getting paid out at entry-level? Would love clarification.

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It's withheld like a bonus. They take out a higher share because it likely wasn't accounted for when you set up your withholding. The difference between what you pay in tax (i.e. withheld) and what you owe comes back to you as a tax refund.

So D3, yes it will when you process your tax return (depending on many other tax factors of course).

I just got paid out at PwC, and it was most definitely my current pay rate, and I had vacation hours from before my current pay rate.

M1: was it taxed at a bonus?

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