I have 4 sick days that i get paid for at the end ...

i have 4 sick days that i get paid for at the end of the year if i do not use them. why are they taxed as a bonus. if i use them during the year they are taxed at the regular rate.


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Not all companies Have paid sick days! They are considered a perk or a bonus that they do not have to offer you. Be gratefull that your company can offer them to you if you need them. The tax differance is not controled by the companies policies, but by the I.R.S.


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Tracy L. Coenen is WalletPop's Tax Expert and Fraud Expert

 

 

Susan - Because this is pay above your regular pay, it's treated as a bonus on your paycheck. But don't worry, when you fill out your income taxes, it's treated just the same as all other wages, so if too much was held out of that check, you'll get it back after you file your taxes.


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