Jul 24, 2024
Hello PYFR team! I love the podcast and appreciate it and
all the resources you offer. My question is about taxes on the
pay-out of annual leave for retirees. I assumed it would be
considered income just like salary and would be taxed at whatever
rate my income met for that year. But, a colleague who is planning
to retire in a few months is planning to use all his leave now
because he thinks the payout will be treated like a bonus and taxed
at a higher rate. And, are bonuses even taxed a higher rate, or is
only the amount withheld higher? Thanks so much! -
Kevin