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Yea, I recommend taking the PTO, hitting Bench for 1 day, then leaving. The payout for PTO is taxable as a bonus (higher rate), but if you take the PTO, then it is taxed as income. Just a thought!
The tax withholding is higher on bonuses but your tax rate is the same on income and bonuses. In layman's terms it means they take more taxes upfront but any "extra" they take you'll get back on your tax refund.
There's no such thing as a "bonus tax rate". It's just that the payroll systems assume your bonus is your consistent salary, so they tax it at a rate as though you make way more than you actually do. That's why you get it back when you file, because you overwithheld since (sadly) you don't make that bonus $$ every 2 weeks.
240 is max carry over per year. Except cali.
But you will get paid out for whatever you have
Here's the policy: 240 max EXCEPT in CA, where they pay out ALL of it
A3 that's pretty interesting. Do you know offhand the rough % difference in tax rate?
It's taxed the same. You get it back.
I think u only get it in Cali. No payout elsewhere. At least that's what I heard
Thats assuming you are leaving
Fantastic, thanks for the info. I am indeed leaving and looking forward to three paychecks worth of PTO payout.
If I'm leaving for sure I'd definitely keep hitting the unassigned WBS until my last day - at least I can collect PTO cash even if it's taxed at a higher rate
And can confirm you'll be paid up to 240 hours, unless you're in Cali, you'll get paid for your total PTO bank.
TA1 so it's taxed as a bonus initially and reverted to regular income through a tax return?
Cool, thanks a4
Just turn off your taxes before you leave to avoid the tax hit.
MyRequests>Create A Request>Payroll Question>Tax US>W4 Exemption Change
*Allowances (thanks A2)
@A5 yep. Only important thing is it make sure you don't underpay by too much or you'll owe a penalty in addition to the taxes owed.
240! That's what I got
Anyone know if D has a max pay-out amount? I thought that we got all if it...