Are we getting our severance pay every two weeks after our severance date or as a lump. The documentation is misleading and contradicts other information
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I have a question. Do we have to notify T-Mobile during salary continuation if we get another job? Do they then stop paying us. Did anyone try to switch payments to lump sum? And the obvious question too, can we collect unemployment during salary continuation?
Does the continuation pay, negate our ability to collect unemployment, vs lump sum you could start collecting right away?
Lump sum drops rafter you sign the document you get once your "Separation Day" passes. Lump sum consists of remaining PTO, prorated bonus, Appreciation Zone points, and your remaining RSU through 2024 is vested.
Continual Pay picks up after your "Transitional Pay" stops on the same cadence. I don't believe it is dependent on when you sign the document post SD.
Do note a few things with regards to both:
Transitional Pay you are still an employee so all withholding taxes are kept, but they do not pull for 401k. I do believe ESPP continues to pull.
Continuation Pay kicks in after your "Separation Day" but incurs the supplemental wage tax, which at a minimum is 22% Federal. The continuation pay is effective treated like bonuses, so expect to pay a lot more in on those deposits.
In the previous layoff, salary was a lump sum payout.. THIS layoff your salary is paid out normally(every two weeks) for as long as your severance package indicates. Lump sum payouts will be bonus, any vacation time, any additional monies for length of service(20 years or more) and of course, any appreciation zone points(4 points= one dollar).
I got laid off last year. This is how it worked for me:
I was on the payroll not working for 69 days. On my last paycheck I got all my PTO.
A couple weeks later I got a lump sum made up of 6 months pay replacement / long term tenure payment / prorated bonus
Around that time my RSU stock grant was vested (I didn't have to wait until February)
Can’t believe there are adults who still don’t understand that withholdings == taxes
Just a reminder that taxes are based on your yearly income.
Taxes withheld from your paycheck are just a guesstimate of how much you will owe in taxes that year, based on how much money they think you'll make for the year and whatever you put on your W-4 form.
A person who makes $100k in a year paid bi-weekly and a person who makes $100k in a year all in one lump sum payment will be taxed the same exact amount when they do their taxes for the year. If one of them gets a refund and the other owes additional taxes, it's because their withholdings (i.e. the taxes they've already paid) were different.
No you didn’t get it right.
You’re employed for 60ish days as you were before notice. Your employment ends after 60 days.. You get a lump sum for your bonus. Then in the weeks after your final day on payroll your salary continuation payments will begin for however many weeks you qualified for.
Suggestions
- Re-read your severance agreement
- If you have questions, there's an email address and an invite to a weekly phone call with the severance team to discuss all of it.
So it is salary and benefits as usual for the 60 day notice period then one lump sum for severance pay and bonus, all at once? Did I get that right?
Bonus is a lump sum.
Your X amount of weeks will be paid out on the usual bi-weekly schedule per the severance agreement.
Fu-k them for doing it this way.
Wrong. Salary replacement is not lump sum. At least not per my agreement and the Benefits for separated employees call yesterday.
Normal pay continues until a final set date. Then a lump sum for severance. Be aware that you'll need to pay taxes on lump sum. You'll probably need to pay extra money to federal government.