A community of 30,000 US Transcriptionist serving Medical Transcription Industry


re PTO taxes, breaks - mouse


Posted: Jul 03, 2012

ok here's the dirt from payroll. If you are paid a lump sum such as PTO, the IRS  considers it "supplemental" and taxes it at 25%! So, if you're considering leaving, best to take all the PTO you have before. Wish I would have known that before. As far as paid breaks, I didn't realize it was "state" dependent...so thanks for that information. Cudos for KY this time requiring a break after 4 hours.  Either way, it would not have mattered to me as I took a break whenever I felt the need to even before KY put to that into effect. Even if Vern himself told me to clock out to use the restroom or take a phone call, that wasn't ever going to happen.      

I, too, lost a big chunk of my PTO pay when I - quit.

[ In Reply To ..]
I would have to look but I think it was more than 25%. It was way more than they take out of a paycheck. I just figured it was one last way to scr#@ me.

re PTO taxes, breaks - mouse - FriendlyMT

[ In Reply To ..]
One thing you may find helpful. My previous manager informed me upon departure from employment --- with lots of PTO to be paid out on the last paycheck, change your federal and state withholding to 8 dependents. I did this at least a month before leaving and the taxes were the most minimal. It worked.

friendly - mouse

[ In Reply To ..]
omg lol that is too funny!Thanks for the tip but I am already a "former" MM MT. I only had 13 hours PTO which I got darn little of by the time all the taxes came out. But thanks for that info...will keep that in mind for future use.


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