I recently accepted a new RN position at another organization and on Monday, I'm going to be giving my notice that I will be leaving the current company I am with.
I currently carry about 160 hours of PTO. Since I will no longer be with this organization due to my upcoming resignation, I see that for employees that are resigning, via their HR department, "the PTO balance will be paid out within two pay period after termination has been processed." The company's HR later says "PTO pay-outs are taxed at the higher supplemental tax rate as required by law"
I know I will already be hit hard with the taxes, however, is there any adjustments, or anything I could do, to not feel as if I've lost so much of the compensation for it once I resign?
Anybody have any prior experiences with this? Can I make any exemptions or adjustments prior to resigning or just accept the higher tax rate? Thank you.
Some employers refuse at least 80% of vacation requests, so you need luck a little luck with that strategy.
What employers are these? I've never been denied a vacation in any of my 4 full-time nursing jobs and would quit a job in a heartbeat if I was. I'm about to go on my 3rd vacation since starting my current job in March, actually, and that's not counting the short trip I took 2 weeks after I started that I negotiated when I accepted the position. I do ask about these kinds of things before I accept positions, though. I won't accept a job without knowing how much PTO I will get.
What employers are these? I've never been denied a vacation in any of my 4 full-time nursing jobs and would quit a job in a heartbeat if I was. I'm about to go on my 3rd vacation since starting my current job in March, actually, and that's not counting the short trip I took 2 weeks after I started that I negotiated when I accepted the position. I do ask about these kinds of things before I accept positions, though. I won't accept a job without knowing how much PTO I will get.
At my last two positions, you had to "break a leg" and go on "medical leave" to take a vacation ...or risk being denied a week or two beforehand. I work per diem now, so it's no longer an issue. PTO was never the problem, getting the time off approved was. I don't know any employer who will guarantee that you'll get specific days off just because you asked.
You can take the amount and place it into a a 401k.. that way it's placed in pre-tax and when it comes out during retirement it will do so at your tax rate then.. not some higher tax rate.
Ones you don't work for, and haven't worked for in the past.
I've worked on units where the standard policy was to deny it first, and only approve it after the union grievance process was gone through.
Not everywhere is the same as where you work...
I know, that's why I asked. It just hasn't been my experience anywhere I've ever worked. I also haven't worked as a staff nurse in 6 1/2 years (and don't intend to again). When I was a staff nurse, there was competition for summer vacations and only 120 hrs of RN vacation time was allowed per week but, since I don't have kids, I took my vacations during the school year when there was less competition. I don't know of anyone who was ever denied a vacation at that job. People could be denied requested days off (that they were just requesting to not be scheduled for, not that they had asked for PTO for) but once you'd asked for and been approved to use PTO, they couldn't go back and deny you. The only person I know of at any of my jobs who was denied a vacation was one of my colleagues who our crazy boss told she couldn't go on her planned trip to South America after it was planned because the company randomly decided to roll out a new computer system during that time. I told her (and I stand by this opinion almost 4 years later) to quit over it. She didn't and rescheduled her trip but ended up quitting a few months later, shortly after I did. Our crazy boss who drove her out was fired by the board of directors not long after.
It's too bad American employers don't recognize the value of time off:
Changes to the PTO policy at my last employer played a large role in my decision to leave, actually. When I interviewed for my current position, my now medical director asked me how I deal with having such difficult jobs (currently working with medically complex children in foster care). I honestly answered that I take vacations. Perhaps it also hasn't been my experience to work for places that deny vacations because I ask about PTO policies before I accept positions. My last 2 jobs I've negotiated trips that I already had planned when I accepted the jobs, both jobs were accommodating. Were they not, it would have given me pause.
If you still have time left to do it, go to HR and change your tax witholdings to claim 99 for your last check so that it doesn't get taxed. Where I live, you can actually do this about 5-6 times per year without having to owe, check with your CPA, but once certainly won't hurt you.
While this will give you more cash now, at tax time it will only make your amount due more or your refund less.
Check with your CPA? Just for my own curiosity, do many here have a CPA, and why?
I do not have a CPA, but I know people who do. From what I have observed, if you don't handle your own money and you don't do your own taxes, before long, you are completely out of touch.
I know more than one highly educated person who sincerely believes that "tax deductible" means the thing in question is better than free. In reality, after meeting a fairly high threshold, expenses after that point are not subject to federal income tax (the rules have since changed). You might get 30% off if that is your marginal tax rate. Very far from free.
Another person I know, also highly educated, thinks long distance phone charges are still in effect. His wife handles everything.
As a general observation, Americans are very proud and even brag when they get a big tax refund, as though it's some type of accomplishment. Of course, what that means, is they were consistently overwithheld.
And Americans are terrified of having to pay in at tax time. It feels much more terrible than it should. Even if it's just a few hundred dollars, it seems like a fine for misbehavior.
In my opinion, CPA's for the average person have something in common with divorce lawyers. They will let you think they are saving you significant money somehow, even when you are still only getting what the law would allow anyway.
While this will give you more cash now, at tax time it will only make your amount due more or your refund less.
Check with your CPA? Just for my own curiosity, do many here have a CPA, and why?
Yeah I'm not sure why the uproar about the tax difference. It all comes out in the wash.
I have a CPA because I have rental properties. I feel it is worth the money to have assistance with that and getting their input on maximizing my tax deferred options.
Check with your CPA? Just for my own curiosity, do many here have a CPA, and why?
My husband and I have a CPA because he is self employed, we use it for the business so not that much more money to use for personal reasons also, although the personal is kept to a minimum for the reasons stated by Oldmahubbard.
As a general observation, Americans are very proud and even brag when they get a big tax refund, as though it's some type of accomplishment. Of course, what that means, is they were consistently overwithheld.
Not always. The people who get the biggest "refunds" often didn't pay anything to start out with. That is a quite impressive feat if you think about it.
I recently accepted a new RN position at another organization and on Monday, I'm going to be giving my notice that I will be leaving the current company I am with.
I currently carry about 160 hours of PTO. Since I will no longer be with this organization due to my upcoming resignation, I see that for employees that are resigning, via their HR department, "the PTO balance will be paid out within two pay period after termination has been processed." The company's HR later says "PTO pay-outs are taxed at the higher supplemental tax rate as required by law"
I know I will already be hit hard with the taxes, however, is there any adjustments, or anything I could do, to not feel as if I've lost so much of the compensation for it once I resign?
Anybody have any prior experiences with this? Can I make any exemptions or adjustments prior to resigning or just accept the higher tax rate? Thank you.
If you are using a 403b or 401K you could increase the withholding amount to divert more of the money to retirement than to cash and you can also change your W4 federal tax withholding to keep more of the cash. I don't think you would owe money at the end of the year by increasing your W4, but even if you don't that just means you'll get a bigger tax refund at the end of the year.
Once you start your new job, sign up for their 401K or 403B and transfer your old retirement account into it via an instituational transfer when you are able. It is a better option than an IRA because there is a little known loop hole that you can access the money tax free if you quit or retire after you turn 55 and can than access the money without penalty. This is not an option with an IRA, you have to wait till your 59 1/2 to use the money without penalty, barring a few exceptions like a first time home or for college, I believe.
In this day and age of uncertainty a person needs all the flexibility they can get. I pair my 403b with a Roth IRA because I know I can access the money without penalty if my back was against the wall. I have a pension too, but it is a church pension and is not guaranteed by the govt pension insurance fund, nice loophole, thanks to our corrupt bought and sold for govt! I may very well take the cash balance upfront rather than the life time annuity because I have read about other hospital systems where people lost their pensions due to this church pension ********!
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Sour Lemon
5,016 Posts
Some employers refuse at least 80% of vacation requests, so you need luck a little luck with that strategy.