So I know all the money is going to be taxed (of course). What’s a good way to avoid the high taxes or what is the tax percentage of the the severance. Do you think PNR is headed for a sale or merge with Parsley. What’s the incentive to stay? Should a person just take the money and pursue another career?
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Max out your 401k for sure. Make sure that you guesstimate you’re actual taxes and, if you are high earner, that you pay extra to IRS before 12/31. Otherwise you may owe a penalty. You cannot ask PNR to take extra taxes from severance as you can for regular paycheck but you can make payment directly to IRS. I owed $43,000 above what they taxed even after maxing out 401k.
As someone who was laid off last year, taxes were not a problem for most of us. PXD withheld enough, if not too much. Some had to pay just a few thousand, many of us actually got some money back.
Seriously. Management is fairly safe. "Retiring" or demotion. 95% will be poor saps who make less than you paid in taxes. The rest is good advice.
Very good chance if you are mid management or technical and you take the package, add it PTO, and options you will find yourself in the 39% tax bracket. That will be earned income for tax year 2020. I know of no way to reduce that, I paid $145,000 for my package in 2019, so save your money for the IRS bill. I know many Pioneer friends that purchased TOYS F-250s, boats, trailers, hunting camps. Use the money to get totally out of debt. You advisors may tell you to convert your 401K to and IRA and let them manage it. Listen respectively, but pay down debt, oil is going to be in the tank for 2-3 years. Sit on some cash 20,000 put it up and forget about it.
Pioneer used to be a company that did the moral/right things. It's now become a company that disregards morality and operates strictly on legalities.
The way I see it Pioneer gives a year and a half so that the half will pay the taxes on the year given. Be grateful for that.
But shoving Pioneer employees onto another company without a severance is not right.
Yes, the company has to look after itself but that still doesn't make it right/moral.
All jokes aside, a realistic way to reduce your tax liability for 2020 is to pop out as many kids as possible by 12/31/2020. You are welcome.
There is always money in the banana stand. ;-p
So where is everyone putting their money to get a write-off? Finish maxing 401k? Roth ira? Contribute to hsa? What else?
If we get bought, I guarantee the severance package from the new company will not be as good. Usually when a company is acquired, they get rid of the legacy company’s employees.
Boom, roasted by YourCPa!
You can refuse the severance pay and therefore not worry about high taxes. Problem solved.
It’s theIRS. Don’t mess with the IRS
Exactly the reason why
How is parsely a merger it’s a tenth our size