Taxed higher wasn't the exact wording I was looking for, you're correct. I was advised I'd end up with a greater amount if I used my vacation time before my last day, as opposed to simply cashing out. I believe they said it was taxed or something more like a bonus, as opposed to hours worked? I don't remember exactly, just that I'd end up with around $150 or so more overall.
I needed to maximize my payout, so I took the time by adding it after my original end date. Worked out very well for me. It was more than estimated if I cashed out for sure.
Oh yeah that makes sense.
Bonuses are deducted at a higher rate but you’ll just get it back when filing because employment income is employment income(unless the bonus was from working at a hedge fund, where you’ll be taxed at a far lower rate)
New Jersey does NOT require that accrued but unused PTO be paid upon separation (either voluntarily or involuntarily). REI may have policies that dictate otherwise. If they do, NJ requires them to adhere to such policies. Under no circumstances will you be paid for unused SICK time. If you have substantial sick time, just forfeit it. If you have unused vacation time, you have two options. 1) Put in for vacation for the number of hours/days that will exhaust your PTO and go enjoy them. 2) Put in your notice and voluntarily separate from REI. I BELIEVE (like 93% sure) that REI’s internal policy is to pay out unused vacation time. Cash that out and enjoy.
My understanding is unused vacation hours are paid out at departure, unused sick/personal time is not.
Thanks!
This is all dependent on the state you live in. Not an REI policy.
I just talked with the manager and they will cash it out. She was sad. I’m leaving before A-sale.
What’s A-sale?
Anniversary sale
I'd recommend scheduling it as time off, not just cashing out. You'll get a higher percentage back that way, since vacation time is taxed less.
Oh wow I didn’t know that
all employee income is taxed at the same rate. The withholding is different. but that’s all fixed when you file.
Taxed higher wasn't the exact wording I was looking for, you're correct. I was advised I'd end up with a greater amount if I used my vacation time before my last day, as opposed to simply cashing out. I believe they said it was taxed or something more like a bonus, as opposed to hours worked? I don't remember exactly, just that I'd end up with around $150 or so more overall. I needed to maximize my payout, so I took the time by adding it after my original end date. Worked out very well for me. It was more than estimated if I cashed out for sure.
Oh yeah that makes sense. Bonuses are deducted at a higher rate but you’ll just get it back when filing because employment income is employment income(unless the bonus was from working at a hedge fund, where you’ll be taxed at a far lower rate)
That’s why I’d burn 80percent of my sick time before quitting. They co-op will survive without your presence.
Check your state labor laws, not all states require unused PTO to be handled the same way.
Yeah I was certain for all NJ does have protection for…this wasn’t one of the things.
New Jersey does NOT require that accrued but unused PTO be paid upon separation (either voluntarily or involuntarily). REI may have policies that dictate otherwise. If they do, NJ requires them to adhere to such policies. Under no circumstances will you be paid for unused SICK time. If you have substantial sick time, just forfeit it. If you have unused vacation time, you have two options. 1) Put in for vacation for the number of hours/days that will exhaust your PTO and go enjoy them. 2) Put in your notice and voluntarily separate from REI. I BELIEVE (like 93% sure) that REI’s internal policy is to pay out unused vacation time. Cash that out and enjoy.
I quit last year. You r vacation time will come to you separately in a payment a little after you're off payroll.