What are the effects of both options in regards to taxes? I have quite a number of vacation days saved up and will probably leave the company this year so I wanted to know which was most beneficial for me. Thanks in advance.
2007-02-07 14:03:29 · 7 answers · asked by TDK 6 in Business & Finance ➔ Careers & Employment
Taxes won't be affected.
Here is something some people don't consider. Say you get 2.5 days a month vacation. If you take a 60 day vacation you will accrue 5 vacation days while you are on vacation. So you will, in effect be paid for 65 days while on a 60 day vacation. If you sell back the 60 days, you will get paid for 60. Just something to think about. I arranged terminal leave when I retired from the Military. I kept getting a check for a couple of months at full pay. It was nice to have those checks coming in while I looked for work. I don't know how your company deals with that sort of thing but it is something to consider.
2007-02-07 14:38:32 · answer #1 · answered by gimpalomg 7 · 1⤊ 0⤋
Taxes are based on income, whether vacation or not. If you take the income, you pay the taxes. But if you want to save it, you need to make sure your company pays if you leave. Some companies consider vacation a perk of their employees while they are employed and do not pay out when they leave. Either it is used or not. My daughter lost her vacations pay when she left the job she recently was on and it was not a small company. A number of people do not get paid if they leave before using vacation. Check the employees manual and see if it says anything, because you might want to use it if you are thinking of leaving.
2007-02-07 14:13:33 · answer #2 · answered by Ladybugtjc 2 · 1⤊ 0⤋
i would use it before you quit. state law varies, but a lot of the time, if you quit, the employer says you are sol in getting paid for it, because in most places, under the law, they only have to pay you for actual time worked. this is different if you have an actual contract, that says you will be paid for accrued vacation time if you leave.
2007-02-07 14:15:39 · answer #3 · answered by Jen 5 · 0⤊ 0⤋
In some states (Calif, Nevada, & perhaps some others) they're required to pay out holiday pay yet no longer sick pay. In New Jersey, i do no longer think of they might desire to. some agencies that don't would desire to, have a coverage to the two pay the whole quantity or a %. So it relies upon on the organization coverage.
2016-12-17 04:56:59 · answer #4 · answered by ? 4 · 0⤊ 0⤋
Take vacation and consider it a paid one....
some companies tend to short change people on paying when they have left...
use it or lose it remains a truism in today's society.
2007-02-07 14:47:01 · answer #5 · answered by cork 7 · 1⤊ 0⤋
Where I live there is no difference in the taxes. Whether you use your vaca. or sell them. If you think you need a vaca. I would take it. If not, sell em. You will get paid what you are owed either way.
2007-02-07 14:09:11 · answer #6 · answered by Meggan P 3 · 0⤊ 0⤋
of course you should use them. that's a no brainer. taxes won't be affected
2007-02-07 14:11:12 · answer #7 · answered by Anonymous · 0⤊ 0⤋