On Wed, Jan 23, 2019 at 11:23 PM Jeff Brantley <[email protected]> wrote:
> The vesting cookbook details a way to account for RSUs, and elsewhere > there is occasional mention of tracking paid time off (PTO) as a commodity > VACHR (vacation hours), though I've not seen as much detail on the latter. > There appears to be some similarity here, as both situations represent > credit for future income---income which the US IRS considers to have > occurred upon that future date. > In the case of vacation the IRS is not involved; it's your employer who is tracking the amount of accumulated vacation hours they owe you. > For vacation, my employer's pay slips specifically split out what is > normally a single "salary" line item into salary and PTO pay, with an > effective hourly rate listed. > Perfect! FWIW mine doesn't, so this looks like a new case to me (does that mean you pay more taxes than I do? i.e., do you pay taxes on your received vacation equivalent? and if that's the case, if you converted to cash it would be already taxed money? Hmm. I doubt it.). > Some companies also allow cashing out of vacation at various times, such > as when terminating one's employment. > Yep; and if you track it, you should be able to calculate precisely how much that check is going to be for. So, assuming one is booking VACHR or HOOL.UNVEST into Asset accounts, I > could see the "realization" date booking going one of two ways: > Note that - importantly - the VACHR units can convert to dollars and some non-zero value should appear on your balance sheet, and when you take vacations your balance sheet should diminish. I price those to estimated net salary / hours and insert new pricing directives if salary changes. This is not quite the case for granted but unvested RSUs; their present value is zero (until they vest). I price those to zero. Option 1) Directly cash in the commodity (with some made up numbers): > > 2018-01-15 * "Payroll" > ;Typical posting when no vacation taken: > ;Income:Hooli:Salary -2600.00 USD > Assets:Hooli:Vacation -8 VACHR @ 30.00 USD > Income:Hooli:Salary -2360.00 USD > ; ...postings to spend down 2600.00 USD in gross income... > > This lines up well with how my existing payslips are already structured, > using pricing (@) to directly capture the relationship between hours burned > and corresponding portion of gross income. This is a one-off price > conversion, too, I don't think VACHR or HOOL.UNVEST would want to be held > "at cost" right? > I don't track cost basis for either of those. In fact, it makes sense not to, say, if your hourly salary increases, the value of those accumulated hours implicitly increases automatically (there's no tax implication for this AFAIK). Option 2) > > 2018-01-15 * "Payroll" > Assets:Hooli:Vacation -8 VACHR > Expenses:[Hooli:]Vacation 8 VACHR ; not sure if I'd want the Hooli > segment to scope it > Not an expense. Only use the expense account when you "spend" your vacation hours (that is, you take vacation). Looks like the above. Income:Hooli:Salary -240.00 USD ; could still choose to break this > out specifically > Income:Hooli:Salary -2360.00 USD > ; ...postings to spend down 2600.00 USD in gross income... > > In this case, the expended commodity is not as directly coupled to the > amount of cash realized, but this lines up better with the U.S. IRS view, > which is that I earned the corresponding income in 2018 (i.e., there is an > Income posting in a 2018-scoped transaction). Likewise with RSUs, where the > shares generally vest in a different year from that of the initial grant, > and the IRS sees income in the vesting year. > Do they? Are you taxed on the 240.00 USD? I don't think you must be. Option 2 is what the Vesting cookbook suggests. > Actually I book the +8 VACHR asset against a -8 VACHR income account, like this: ... Assets:US:Hooli:Vacation 7.69 VACHR Income:US:Hooli:Vacation -7.69 VACHR these are tacked at the end of each of the regular payroll transactions I get. I suppose one way to look at this is to consider the my salary leg includes implicitly something like that above and I'm paying taxes on the vacation that way. If I were you, I'd do it the way I do, and book your income as -2600.00 USD (if you pay taxes on that amount). > I'm just wondering (a) if there were any additional considerations or > pros/cons behind this suggestion besides those I've mentioned, and (b) > whether Martin Blais or any others who track vacation do likewise when they > take vacation. > > -- > You received this message because you are subscribed to the Google Groups > "Beancount" group. > To unsubscribe from this group and stop receiving emails from it, send an > email to [email protected]. > To post to this group, send email to [email protected]. > To view this discussion on the web visit > https://groups.google.com/d/msgid/beancount/5eea9e36-d53a-42ac-ae05-de3c3a36bcfd%40googlegroups.com > <https://groups.google.com/d/msgid/beancount/5eea9e36-d53a-42ac-ae05-de3c3a36bcfd%40googlegroups.com?utm_medium=email&utm_source=footer> > . > For more options, visit https://groups.google.com/d/optout. > -- You received this message because you are subscribed to the Google Groups "Beancount" group. 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