Jump to content
2019 Nursing Salary Survey Read more... ×

Resignation, What To Do With Accrued PTO??

Nurses   (2,607 Views 29 Comments)
by J89Mike J89Mike (New Member) New Member

955 Visitors; 7 Posts

advertisement

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.

Share this post


Link to post
Share on other sites

Daisy4RN has 20 years experience.

459 Likes; 1 Follower; 5,582 Visitors; 752 Posts

I would call your HR to find out if there are alternatives. I once had a similar situation and could transfer the money to an seperate account managed by a third party but could only be used for healthcare related expenses and premiums, I was using Cobra so it worked for me at that time. A bit more work but no extra/increase in taxes. Hope you can find something similar and good luck at the new job!

Share this post


Link to post
Share on other sites

60 Likes; 3 Followers; 33,540 Visitors; 4,124 Posts

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.

Use it up.

Share this post


Link to post
Share on other sites

RainMom has 7 years experience.

4 Likes; 23,378 Visitors; 1,078 Posts

At the end of the year, it won't matter. It will be included in your yearly gross & taxed according to that. If too much is taken out right now when you are paid your final check, then it's just that much more that will be applied on your tax return, either lowering your tax bill due or increasing your tax refund in April.

Share this post


Link to post
Share on other sites

KelRN215 has 10 years experience and works as a Complex Care Manager.

38 Likes; 67,244 Visitors; 7,344 Posts

If you change your W4 allowance so that less is taken out in taxes, you're just going to owe more at the end of the year.

Share this post


Link to post
Share on other sites

SC_RNDude has 7 years experience and works as a RN.

6 Likes; 16,367 Visitors; 533 Posts

At the end of the year, it won't matter. It will be included in your yearly gross & taxed according to that. If too much is taken out right now when you are paid your final check, then it's just that much more that will be applied on your tax return, either lowering your tax bill due or increasing your tax refund in April.

Yes, this is correct.

When you do your tax return, your income from this job is going to be one amount. There isn't line items for hourly pay, pto, bonuses, etc. that are taxed different amounts.

I here your concern all the time at work when people are cashing out pto or we are getting a bonus.

It's discouraging to me how many people don't have a basic understanding of this works, and that they only seem to know about how much taxes they pay in how much us taken out of their paycheck and how much refund they get when they file tax returns.

Edited by SC_RNDude
Edit

Share this post


Link to post
Share on other sites
advertisement

205 Likes; 2 Followers; 5,516 Visitors; 936 Posts

For whatever reason, the withholding rate on supplements and bonuses is higher, but the actual tax rate at the end of the year is the same.

I think most people would be astounded by what they would learn, if they would just do their own taxes one time, by hand, not with a software program, but with a book.

Share this post


Link to post
Share on other sites

1 Like; 179 Visitors; 16 Posts

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.

Share this post


Link to post
Share on other sites

klone has 13 years experience as a MSN, RN and works as a Director of OB Services.

305 Likes; 3 Followers; 112,060 Visitors; 12,926 Posts

Use it up.

A lot of places have a policy wherein you cannot use your PTO in lieu of your 2 weeks' notice.

Share this post


Link to post
Share on other sites

NuGuyNurse2b works as a Student Nurse.

22 Likes; 9,115 Visitors; 922 Posts

^ That's why you schedule your vacation, come back, and resign LOL.

Share this post


Link to post
Share on other sites

Meriwhen is a ASN, BSN, RN and works as a Psychiatric sheep...er, nurse.

38 Likes; 2 Followers; 2 Articles; 58,851 Visitors; 7,837 Posts

Call HR and see what your options are. But keep in mind that many places will not let you take PTO while you are working your notice.

Best of luck at the new job!

Share this post


Link to post
Share on other sites

Alex_RN has 3 years experience and works as a RN.

11 Likes; 3,477 Visitors; 305 Posts

We are near the end of the year. Is there anything you can do before 12/31 to lower your overall tax rate? Can you squeeze out a kid in the next 5 weeks? What if you park the cash in an IRA or something?

Share this post


Link to post
Share on other sites
×