If you get laid off and have accumulated unused PTO, when they give you a check for the unused PTO, are those funds considered taxable income? If so, wouldn't those funds be double taxed?
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My PTO was paid on last check of my notice period. Considered taxable and treated as such.
@ev accrued PTO is completely separate from severance. All of your unused PTO is paid out once your notice period ends and your employment terminates.
@db . So, you are saying that they will just tack on to your severance the PTO time. For example, If you worked for ten years, you would get 20 weeks worth of pay. You are saying that they would just tack on the number of days you have for PTO and add that to you severance check?
I’m so confused why you would think this. Why would income from PTO not be taxable?
@OP why would you think PTO istax free?
My accrued hours were added to my final paycheck and the whole shebang was taxed at 50%.
P - Paid (this is key)
T - Time - not tax free
O- off work but for you more runway
Great question for your accountant