Cashing Out Vacation Time
Companies have different vacation policies for employees. At my company I am lucky to have the option to sell 1 week of vacation time ( 5 business days), and receive the equivalent of one week’s pay. When I started work this summer, part of my vacation package included 8 days of vacation time, 3 personal business days, and 2 personal floating holidays. I decided to sell 1 week’s of vacation to put it towards our DC vacation. There are definitely a few benefits to cashing out vacation time = AKA Money! Plus, you don’t have to miss work.
But what do you lose?
- Time Off- This time can be used to visit family, work on personal life, or go on vacations. I would probably use it as relax time on the couch. The ability to sleep in is sacred and I miss it!
- Money- Yes, you lose money. Little did I know, 40% of my week would be put towards taxes. My company, also, doesn’t match retirement contributions, even though this extra money is part of my salary. In essence, I just paid the government to work more? Hmm…
I’m glad I sold my vacation to fund our DC trip. But this morning when I didn’t want to get out of bed, I thought of the extra week of vacation I could have had all to myself.
Next year, I have 15 vacation days, 3 personal business days, and 4 personal floating holidays. I, also, have 10 days of sick time. I’m not sure if I will sell vacation. Right now, I’m leaning towards not, but things always change.
What do you think about cashing out vacation time? What is your company’s vacation policy?