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socrateaser, Lawyer
Category: California Employment Law
Satisfied Customers: 38910
Experience:  Retired (mostly)
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referral from Tax advice: are there any California or other

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referral from Tax advice: are there any California or other employment law issues with the below?
Megan C says:
8:44 AM
Thank you for your question, and thanks for using
8:44 AM
Yes, you are correct. If the company deferred payroll, they should book the deferral as a liability on their books
8:45 AM
So, they incurred the payroll expense but have not paid it yet. It's a debit to payroll expense and a credit to salaries or deferral payable. Customersays:
8:48 AM
Thank you, XXXXX XXXXX guessing that the only account impacted by the use of PTO is the vacation accrual. Is that another lucky guess?
Thank you!
Megan C says:
8:49 AM
Yes, that is correct, the vacation accrual would be impacted by the use of PTO Customersays:
8:50 AM
Finally, do you practice in California? Is there anything impacted by state law/regulations here? We are only talking about people whose reduction was to $100k annually, so there shouldn't be any wage & hour issue...
Megan C says:
8:51 AM
Thanks, XXXXX XXXXX practice in California so I could not speak to state laws. I would post that in an employment law question.
Hello (again).

I'm not sure what you're asking here. Are you suggesting that employees may lose earned vacation time?

If not, then please provide a brief explanation.

Thanks in advance.
Customer: replied 3 years ago.

any issues with the above? Employees are choosing to "cash in" their PTO. Company is accruing their deferred portion of compensation.

Employees cannot force an employer to cash out their vacation time, except at termination of employment. However, the employer can involuntarily cash out the employees at any time, as long as the conversion is based upon the employee's current rate of compensation. If the employee is hourly, then that is the rate used to pay the PTO. If salaried, then it's based upon monthly salary, divided by 173.33 hours -- or weekly salary divided by 40.

Other than that -- no issues.

Hope this helps.
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