Yes. I cashed out unused vacation when leaving my last job. The lump sum increased my withholdings rate, but I get the extra back as soon as I can file income taxes. In fact, sometimes employers will mandate employees take vacation as a way of reducing liabilities on the books, since stuff owed to employees is more senior than bondholders and shareholders.

Yes. I cashed out unused vacation when leaving my last job. The lump sum increased my withholdings rate, but I get the extra back as soon as I can file income taxes. In fact, sometimes employers will mandate employees take vacation as a way of reducing liabilities on the books, since stuff owed to employees can be more senior than bondholders and shareholders.