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How do you record PTO you were paid out on

I just resigned from my job, and had accrued PTO. How should I be recording this payout?

Answers

  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    I'll betcha that, on your year end tax documents,this will show up as salary.
    I'd record it that way in Q also.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭
    As far as the IRS is concerned, PTO payout is just like any other earned, taxable income so it should be treated like any other paycheck in Quicken, too.
    If your PTO was or will be paid out along with your final separation paycheck and if you have a Paycheck Reminder or Income Reminder already set up for your paychecks you can modify the final Reminder by editing the gross Salary amount to include the PTO or you can add a separate Salary sub-category of Vacation or Sick Leave (since that is what PTO is for, anyway) for it.  If you want, you can even go to Category List and edit the name of the sub-category you select to change it to PTO.
    You will then also want to change the deductions and taxes amounts since those will be changing, as well.
    Of course, you probably can't make these changes to the Reminder quite, yet, unless you have already received your final paycheck showing all the category amounts for pay, deductions, taxes, etc.
    If your PTO will be paid out separately from your final paycheck (not common), you can set up a 1X Paycheck Reminder to accomplish this.  Or you can simply enter it as a split category transaction with the amount of the transaction being your net pay and the category splits including your gross PTO and any taxes and deductions that are taken out of it.
    If you have not been using a Paycheck Reminder or Income Reminder to categorize it for tax reports and simply have been entering your paychecks as Net Salary, then you could do the same with your PTO payout and maybe enter a note in the Memo field regarding it.
    (QW Premier Subscription: R32.12 on Windows 10)
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