Pay out unused PTO in California. Taxed?
Hey guys, if I get paid out my unused pto, does the gross amount get taxed the same as if it were regular income? Would I get deducted federal income tax, social security, Medicare, ca state tax, etc? Thanks!
Hey guys, if I get paid out my unused pto, does the gross amount get taxed the same as if it were regular income? Would I get deducted federal income tax, social security, Medicare, ca state tax, etc? Thanks!
Yes, the IRS does not differentiate. Not sure about CA but I'd be surprised if it were any different.