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Timing of imputed income

MKD
MKD
edited November 2010 in General Payroll Topics
One of our employees is being sent on a vacation at company expense. Would the value of the vacation be added as taxable income at the time he travels (in 2011) or at the time the travel was paid for (2010)?

Comments

  • It is interesting. Also seems to me like until the employee actually gets to leave, the vacation could be canceled or transferred to someone else.
  • Mindy wrote:
    It is interesting. Also seems to me like until the employee actually gets to leave, the vacation could be canceled or transferred to someone else.

    My reasoning is the same, that he hasn't actually received it yet, so it would be taxable at the time he takes the vacation. I would not want to add it to his 2010 W-2 only to have him not go on the vacation for some reason, then have to do a W-2C. I will also await Professor Pat!
  • I will also await Professor Pat!
    Gee - I'm flattered.
    One of our employees is being sent on a vacation at company expense.
    Gee - is this to get the guy out of the office so someone can go through his desk to see what can be cleaned up? :wink:

    Has the money been set aside and does he get it (the money) if the vacation does not take place? Or, more to the point - has he been given the tickets and could he cash them in? Did he win this? What if employment terminates or he dies before taking the trip? Does the trip or its value revert to the company or to the estate?
  • One of our employees is being sent on a vacation at company expense.
    Gee - is this to get the guy out of the office so someone can go through his desk to see what can be cleaned up? :wink:

    Has the money been set aside and does he get it (the money) if the vacation does not take place? Or, more to the point - has he been given the tickets and could he cash them in? Did he win this? What if employment terminates or he dies before taking the trip? Does the trip or its value revert to the company or to the estate?[/quote]

    As my boss said, he gets paid for every hour he works (though he is exempt) and doesn't delegate, so this is what we are rewarding?! Someone probably should take a look at what's there.

    If he terminated, he would not receive the vacation - so no constructive receipt yet. I guess that is my answer.