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PTO / IRS / CASH

ShadowfaxShadowfax 910 Posts
in Benefits & Leave Vote Up0Vote Down
I'm a neophite in the benefits area, so be gentle. Are there IRS issues in cashing out a PTO plan (other than wages) and are there limitations on carryover from year to year? If someone could point me in the right direction, please. Thanks.
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  • bsabsa 359 Posts
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    [font size="1" color="#FF0000"]LAST EDITED ON 09-08-04 AT 03:04PM (CST)[/font][br][br]PTO cash out is wages and should be taxed as such. There is no federal regulation on the amount of carryover ... it is strictly company policy as to how much or little the company can tolerate.

    I think I should add to check your states' law regarding PTO cash out requirements.
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