2007-03-14 13:06:25 · 6 answers · asked by pookierock 1 in Business & Finance ➔ Taxes ➔ United States
An ex-employee stated that an attorney said that it was wrong to withhold payroll taxes from unused vacation payout.
2007-03-14 16:31:26 · update #1
Payroll taxes are taken on every frickin dime your employer pays you. According to the IRS your boss should even tax gifts if more than $25 a year.
Your employer also has to pay his share of the payroll taxes on every dime.
The tax system is out of control and you always pay the taxman first.
2007-03-14 13:10:28 · answer #1 · answered by Gem 7 · 0⤊ 1⤋
The logical question to ask is: had the employee taken vacation during the normal course of employment would those wages be taxable? Answer: Yes. They are also taxable if paid out during or after employment.
Louisiana follows the IRS definition of wages and a link to an explanation of that definition is provided below.
2007-03-16 08:59:26 · answer #2 · answered by Dennis D 2 · 0⤊ 0⤋
Vacation pay is just wages that are paid for time off. Wages are taxable.
2007-03-14 14:15:22 · answer #3 · answered by irongrama 6 · 1⤊ 0⤋
Why wouldn't that be taxable income? Yes, taxes are taken out.
2007-03-14 13:33:44 · answer #4 · answered by Judy 7 · 1⤊ 0⤋
Of course.
Social Security has a multi-trillion dollar deficit, and Medicare has an even bigger one. Why are you trying to avoid putting money to help those deficits?
2007-03-14 14:02:38 · answer #5 · answered by Quixotic 3 · 0⤊ 0⤋
It is taken from any and all pay.
2007-03-14 13:08:39 · answer #6 · answered by Anonymous · 2⤊ 0⤋