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Tax on purchased leave

Newbie

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Replies 1

We allow our employees to purchase additional annual leave and deduct it from their pay throughout the year. 

 

Is purchased annual leave a pre or post tax deduction?

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Devotee

Replies 0

In my experience (non tax professional but a education worker who has used purchase leave) that the deduction for purchased leave was taken pre-tax. The deduction was eventually taxed when I took leave. This is how ANU used to do it.

If it was from post tax then it shouldnt be taxed when taken.

 

 

 

 

 

 

1 REPLY 1
Highlighted

Best answer

Devotee

Replies 0

In my experience (non tax professional but a education worker who has used purchase leave) that the deduction for purchased leave was taken pre-tax. The deduction was eventually taxed when I took leave. This is how ANU used to do it.

If it was from post tax then it shouldnt be taxed when taken.