Can somebody on here who has quit State Farm or knows somebody who did it tell me if when you leave on your own, do you get paid for unused vacation time or not?
Just trying to make sure I have all the necessary information in advance in case I do decide to pull the plug (which seems more and more likely each day.)
Does anyone know if you're able to roll your PTO payout into your 401k?
I quit 6 weeks ago. Got my vacation payout a few weeks after I quit. They do tax at a higher bonus rate although I’m still unclear why that is the case.
My accountant said it’s all taxed the same when filing. I suspect (but have no proof) that it has something to do with ensuring enough taxes are withheld in case the bonus bumps you into a higher tax bracket or something like that. I changed my exemptions to a huge number before I left to try and avoid the higher taxes. Not sure if it worked because I haven’t calculated it all out.
Unused PTO payment is taxed at the federal supplemental rate (25%), plus FICA if applicable (7.65%), plus state and local taxes, if applicable. Illinois state is 4.95%, so expect to be taxed 37.6% for unused PTO - a little bit less because of exemptions, but I'll bet you can count on 35%.
Check is bigger since there aren't deductions for health insurance or 401k. But COBRA afterwards will cost a bundle.
It's my understanding that unused PTO is taxed at your regular rate - like a paycheck, but not like a bonus.
For that that have received vacation time payout, how hard did you get hit with taxes on it? Just wondering how much actual after-tax cash I can plan for.
Yup all my accrued time that I could never use was paid out to me.
Federal law they have to pay you for unused vacation time.
Can confirm - I left last year and received payment for all of my unused vacation time.
Look in HR manual and it tells you there: you get paid for unused time.