You are not required to take a distribution on your Vacation/PTO account, however if your Vacation/PTO account balance exceeds $20,000 (effective May 31, 2021) at the end of the Plan year (May 31) the balance shall be paid to you in December without application.
Vacation/PTO benefits must be requested in 1-hour increments unless no contributions have been made to the ECI Plan on your behalf for 6 months.
If your Vacation/PTO account balance exceeds $20,000 (effective May 31, 2021) at the end of the Plan year (May 31), the balance (less an amount equal to 72 hours times your straight-time hourly wage rate, which shall be retained in your account to pay you future Vacation/PTO benefits) shall be paid to you in December without application. Your July statement will notify you that if you fail to apply to receive such Vacation/PTO benefits prior to December, the Plan will distribute the balance in December.
Depending on the Agreement you are working under, Vacation/PTO benefits are generally based on a percentage of gross earnings for which contributions are received. The percentage of the majority of the agreements are 6.15%, however you may contact the Plan office or Union to verify the percentage that applies to the agreement you are working under.
Beginning in 2020, the IRS has implemented changes to the W-4 Withholding form. The 2020 standard IRS W-4 form requires the use of a withholding table based on annual summary which is not applicable to supplemental payments such as those received from the Vacation-Holiday Plan. Therefore, we are providing a W-4 form which will be required with future Paid Time Off Benefit request forms.
You will no longer be able to select the number of exemptions to determine the percentage of federal tax withholding nor will you be able to claim Exempt. Instead, you will be required to select an actual percentage of federal withholding on the W-4 form.
If a W-4 tax form is not returned with your Vacation/PTO request, the default withholding for federal taxes is 24%. Therefore, if you would prefer a lower rate of withholding, you must complete and submit a W-4 form.