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#1 Aug 18, 2017 6:51 am

Slice
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THERE IS A PRICE THAT MUST BE PAID FOR NOT USING YOUR LEAVE

I really just started using my leave time. Maybe in the last two years.  My boss just did not want me to take leave.

For more than 10 years. I hardly took any leave, as a result I accumulated the max on both PL and Vacation  time, so much so that once I got to the maximum, my leave started going to a bank, to every three I got I lost two.

Now as I started thinking about retirement, I said ok I will get a sweet payout.  I got the shock of me life, when they told me, My leave will be taxed at the rate of 48%.

Slice bray like ah donkey, when he hear that.  All I can say is how the F&%k is that possible?

One can say for the last ten years,  Slice has been working for the city for nothing.



http://www.msn.com/en-us/money/retireme … id=DELLDHP

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#2 Aug 18, 2017 7:48 am

Real Distwalker
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Re: THERE IS A PRICE THAT MUST BE PAID FOR NOT USING YOUR LEAVE

It will be taxed as regular income.  Your employer will withhold at the rate of the highest bracket which, state and federal, is probably about 48%,   All that means is you can expect a big tax refund.

Well, unless you are married and making more than about $280,000 per year.  Then that marginal income might be taxed ad that rate.

Last edited by Real Distwalker (Aug 18, 2017 7:49 am)

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#3 Aug 18, 2017 9:05 am

Slice
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Re: THERE IS A PRICE THAT MUST BE PAID FOR NOT USING YOUR LEAVE

RD how the hell 48% is legal?  this  is just not normal.  Leh me not comment of the 280, because we file jointly.  It is damn scary.

That is what I call Highway Robbery.

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#4 Aug 18, 2017 10:05 am

Real Distwalker
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Re: THERE IS A PRICE THAT MUST BE PAID FOR NOT USING YOUR LEAVE

Slice wrote:

RD how the hell 48% is legal?  this  is just not normal.  Leh me not comment of the 280, because we file jointly.  It is damn scary.

That is what I call Highway Robbery.

Welcome to the Republican Party.

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#5 Aug 18, 2017 9:26 pm

Expat
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Re: THERE IS A PRICE THAT MUST BE PAID FOR NOT USING YOUR LEAVE

I know nothing worth talking about regarding the US tax methods..... but didn't RD say that it would be taken..... and then refunded by the government?

But even if not very much, don't blame the Government. If you stockpile monies.... be it via holidays or not, then the Tax people will just see one lump, and treat it accordingly. It is not their fault if you stockpiled revenue.


Your best bet probably is to take all or most of your leave on the run up to retirement.

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#6 Aug 19, 2017 10:57 am

piratejenny
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Re: THERE IS A PRICE THAT MUST BE PAID FOR NOT USING YOUR LEAVE

thing is - I once accrued gobs of leave, and kept working and putting leave off. Then the company was in bankruptcy and I worked until the last day. When the dust settled, I got the proverbial 10 cents on the dollar for sacrificing my leave to my goody-goody work ethic. Slice, appreciate what you are getting even if taxed to the hilt.

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#7 Aug 21, 2017 8:54 am

Slice
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Re: THERE IS A PRICE THAT MUST BE PAID FOR NOT USING YOUR LEAVE

Well is not that I am not, it is that ah would Uncle Sam to stop robbing me.

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#8 Aug 21, 2017 3:29 pm

Expat
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Re: THERE IS A PRICE THAT MUST BE PAID FOR NOT USING YOUR LEAVE

Your problem is that you are being penalised for getting the money all in one go. If you had taken it as leave you would not have received this extra money. You cannot have it both ways. You already got paid for the period you actually worked.

Several decades ago when I was borderline higher rate tax, many people bitched about doing overtime only to get taxed at the higher rate.  Personally I thought they were dumb, as you don't pay higher tax on the entire figure, only the portion that is into the higher tax band, so the tax increase is not THAT big. Also if you aren't in the higher tax band your money is not all that good. Me, when I was working I was happy to be taxed at the higher rate.... I am not saying I wanted to be taxed at that rate, but it meant I was earning good money. I know people who have never even come close to paying higher rate tax, and they are catching they arse.

Presumably at the end of the year the IR will figure out if it was over their limit for the entire year, and if not as RD suggested you may well get a rebate...... Bonus.

Just went back on your OP..... So you are saying every time you didn't take leave you lost a third of it.... You MAD or what.... Lord. Screw what your Boss wants.

Last edited by Expat (Aug 21, 2017 3:33 pm)

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