Tax on leave payout

[jezzad]

Hey all

Wondering if someone can give me an answer

Im leaving my current company and moving to another, I have quite a lot of leave built up which my current company needs to pay me out for.

When they pay me out for the leave is this taxable?

 

[SirFooK'nG]

Yes it will be taxed.... always better to have used the leave than cashing it..

If you used the leave day, you were paid a day and had a day off (salary still taxed), now you don't have a day off and will still get taxed.

Remember, anything earned is taxed....

 

[saturnz]

actually, it is better to carry the leave forward if maximising your cash received is the goal

also the leave carried forward increases with any of the inflationary wage increases you get, sort of like a savings vehicle with 5-7% return per annum

and yes it is taxed as your normally would be taxed, although consider if it may possibly push you up into a higher bracket, in which case you need to do some sums to see how to structure the payout.

 

[supersunbird]

Yes it will be taxed.... always better to have used the leave than cashing it..

If you used the leave day, you were paid a day and had a day off (salary still taxed), now you don't have a day off and will still get taxed.

Remember, anything earned is taxed....

Only if you have something worth while and constructive to do with the leave day...

 

[Celine]

your leave pay is taxed the same as a bonus.

 

[Devill]

Only if you have something worth while and constructive to do with the leave day...

Rest can never be over rated

 

[supersunbird]

Rest can never be over rated

I like to do something constructive with my time at home (and most of the constructive things left to do require money, the free and cheap one have been done or have enough time to do during weekends) or go away from home.