The IRS taxation must be done separately from the normal remuneration. If the vacation allowance is paid over several periods, the tax rate applied is taken based on the estimated yearly vacation allowance. However, for the Individual Income Declaration, the vacation allowance gross amount must be declared conglobated with the normal remuneration.

If there is a change in the estimated yearly amount and this affects the derived tax rate, the tax deductions already made must be corrected according to new tax rate.

The vacation allowance paid at contract termination must be conglobated with the regular vacation allowance already paid. The leave compensation amounts paid for the same purpose must be conglobated with the regular income