Vacation Pay and Taxation to Employee

[Guest derek]

Is there any limit on timing and payment terms of a company's vacation policy that affect the taxation of the amounts? Here's my real question...

If a company has a policy of paying out unused vacation pay once a year or allowing the employee to leave the amount in the "plan" or vacation bank, does that create some type of constructive receipt that triggers taxation to the employee? With other areas of the IRC it could, but what about with vacation pay? There is basically no forfeiture provision for the vacation pay that is left in the vacation bank.