2007-06-04 04:15:56 · 17 answers · asked by topgun0265 1 in Business & Finance ➔ Taxes ➔ United States
your employer is only following the tax laws and taking uncle sams cut
2007-06-04 04:19:27 · answer #1 · answered by john w 2 · 0⤊ 0⤋
Your employer can't tax you on anything - the government levies and collects all taxes. Your employer is only withdrawing an estimated amout from your paycheck to cover the amount the government will charge you on April 15th.
To answer your specific question, vacation pay is taxable, so you will get taxed on it the same way you get taxed on the rest of your income.
However, you can request that your employer withdraw less from each paycheck if you wish. Speak with HR to get a W-4 form and change the amount of exemptions you claim. You can find more details online if you google the IRS.
2007-06-04 11:21:22 · answer #2 · answered by TheEconomist 4 · 0⤊ 0⤋
YES, it's still income. The only difference is that you did not have to physically be on the job during the vacation period.
I've heard of some companies which were short of workers who paid the worker their vacation pay, plus regular pay since they could not take their vacation. Later when the labor shortage was over they would get a week paid vacation.
2007-06-04 12:04:47 · answer #3 · answered by norwegian2us 2 · 0⤊ 0⤋
Vacation pay is considered wages, since it is compensation for your services.
Not only is income tax owed, but also Social Security and Medicare are taken out of vacation pay.
2007-06-04 12:56:29 · answer #4 · answered by ninasgramma 7 · 0⤊ 0⤋
No, employers never levy taxes. They will, however, withhold income and FICA taxes from your vacation pay. It is fully taxable as ordinary income and will be reported on Form W-2 with the rest of your wages and withholdings.
2007-06-04 11:20:28 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Not only can, but is required to. It's pay. Why wouldn't it be taxable?
Actually, the employer isn't the one taxing you, the federal and state and possibly local governments are. The employer is only withholding the tax, and forwarding it to the government entities.
2007-06-04 14:11:53 · answer #6 · answered by Judy 7 · 0⤊ 0⤋
Vacation pay is no different than your regular worked time or productive time pay. The only difference is that it identifies the time paid as vacation rather than worked time.
All pay is taxable with few exceptions such as pretax deductions for retirement plans, etc.
dont complain to your Human Resources department, but rather to your state and federal legislature if you dont like it.
2007-06-04 11:26:43 · answer #7 · answered by Daniel R. 4 · 0⤊ 0⤋
Of course. You are always taxed (USA) on your pay, vacation, bonus, or otherwise.
2007-06-04 11:17:58 · answer #8 · answered by kja63 7 · 0⤊ 0⤋
Yep, vacation pay, profit sharing, Christmas bonuses...
Sorry!
2007-06-04 11:19:17 · answer #9 · answered by snacgirl 3 · 0⤊ 0⤋
anything the employer gives you in the way of wages earned & gifts unless your his relative, is taxable.
2007-06-04 11:20:24 · answer #10 · answered by ticketoride04 5 · 0⤊ 0⤋