I work in Pittsburgh and just found out my job is being eliminated (after 18 years). Must say I wasn’t shocked, so much of our work has been shipped to India. Anyway. trying to figure out my finances. Could someone on here who has lost their job in Pa tell me the total percentage it was taxed? Was the extra health insurance payment stipend taxed too?
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That really makes no sense. I have been laid off from a former Wall St firm and I had to move the 401(k) to Roll Over IRA (or even regular IRA) - no taxes no nothing.
Maybe you took a distribution or did a ROTH. That was YOUR call. Not a organization imposed call - even if VOYA said you cannot keep the funds with them.
Your posting is nothing but a lie ... Sorry had to say that
I was laid off last year (thankfully). Had no choice but to move my 401(k) ti an IRA, had quite the tax hit this year… be prepared
Is it severance pay or supplemental unemployment benefits? Are they not paying it as SUB anymore?
All the ones on here complaining now are the same people who dismissed warnings when discussions first appeared on this board about the impact this change to a severance model would have on workers especially tenured workers.
Who cares how much they withhold. That has little to do with how much you're taxed.
@OP the stipend is included in the taxing. It is lumped all together as one payment for your severance
@ex this is lies. Try more like 47 percent taxed. If you were given 25k. You are bringing home 14k. That is 11k split between taxes and disability cr-p.
Expect almost half of the severance to go to state, federal and disability garbage. That is what happened to my so called.deserved severance and others like me. We were hurt heavily in the taxes just like when working for them. I am disgusted by BNY and the way they handled.everything but even the government is sc--wing the little guy over. Great. Might as well get the card board boxes ready. In CNY finding jobs has been rough and almost nil and then getting ripped off half my severance which I needed to live on until I found a new job....not to mention my medical is gone so my mess I can't even afford. New York state, the federal government and BNY are all garbage to middle.and low.class workers
Quite simply is taxed the same as it was when you were working there and will be on W2
If in PA, how did the lump sum impact unemployment compensation eligibility?
Got laid off earlier this year (in NY though). Was taxed about 40% total. 22% fed, 10% state and about 9% between Medicare and SS. They taxed the stipend the same way. It was all lumped together in 1 lump sum payment. So for example if you are getting 50,000.00 between the stipend and severance, the take home would be 30k.
Federal Income Tax: The IRS considers severance pay as supplemental wages. Most employees can expect 24% federal income tax.
State Income Tax: Pennsylvania is one of the states that taxes severance pay. Expect 3.07%
Local Taxes: Pittsburgh also levies an Earned Income Tax on severance. Expect 3%
Social Security and Medicare Taxes (FICA): Severance pay is also subject to Social Security and Medicare taxes, just like regular wages. Expect 6.2% for social security and 1.45% for Medicare.
48% tax
@bn yes that was my question. Trying to work the numbers. Also wondering if anyone had success applying for unemployment in Pa too
I think the question was more about do they take the 20% off the top like other distributions....at least that's what I wonder. I assume they do but would like to know for sure.
Yes, the entire amount will be taxable income to you.