If you are recently got the severance check then check it carefully, AT&T tax team taking more than 22% standard federal tax, not sure if it a mistake or intentional but 4 of my friend paycheck calculation was way off, At&t took $10,000 extra on their federal tax and after the complaint not AT&T will be paying them the remaining amount. $10,000, yes ten thousand dollars not 100$. Same issue with the state tax as well, so check your last severance paystub carefully and call the HR or Payroll ASAP.
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@1hvq+1o5XBz31 yes u can see ur paystub here
https://hraccess.att.com/hraccess/#/dashboard.
Click on retiree former employee
When you file your taxes next year, you will get back a big chunk of money back.
I got the axe back in March. After completing all of the items on the checklist for registering for access to view pay stubs after my “exit”, the site never worked. I was never able to login to view the actual paystub. The deposited amount seemed to be accurate, but I honestly didn’t even care because I landed a new job elsewhere two days after my last day for a lot more pay and less headache.
I have my own big office and I can WFH or at the office and I can tell you that the grass is definitely greener on the other side.
For those that are affected by T’s mismanagement of the company and end up being sacrificed, I wish you the best. Stay calm and stay focused…you will get through it.
Interesting conversation. For me, the amount seems to right as expected, but a question for you guys. I got the direct deposit, but no actual "check" or "stab". Is is something that's supposed to come in the mail, or is it available online?
Continued: BTW, here's an explanation of severance withholding. The company does not have to withhold at the 22% supplemental rate since it will be taxed as normal wages anyway.
https://www.experian.com/blogs/ask-experian/how-is-severance-pay-taxed/
And someone's going to be pi---d when they figure out severance may bump them into the next tax bracket and they owe. Severance can be treated as either supplemental and withheld at the flat 22% or regular wages, which is likely what T is doing and therefore withholding more. How it's reported and withheld doesn't change that it will be taxed as ordinary income.
6 months severance will put me into the next tax bracket, so I'm okay with the higher withholding. I will get back anything over when I file next year. I'm not so strapped that I'd take the chance to demand them only w/h at 22% only to have to owe later. Normally I have it worked out to not owe and get back just a little. Learned long ago that a huge refund just meant I gave Uncle Sam an interest-free loan.
If you get into a severance situation - Jack up you federal withholding to 8 before the check hits. Then you can decided the outcome.
Always works for any check.
I got a letter I was overpaid on my last check and now have to deal with this. Couldn’t get a previous mgr to look into the item on my stub - now I know what it is.
It has always been like this there's some federal or company policy about making sure they don't take too little out. Which normally means you end up having your end of year estimated end of your tax rate taken out rate not amount versus your marginal tax rate
Severance is taxed at the supplemental rate. You'll get the difference back when you file.
The software for tax collection assumes your paycheck reflects your annual pay. (24 paydays => annual= 24* check amount).
September surplus received 8 months pay + 6 months severance= 14 months pay. This may jump you into a higher bracket. Especially if you receive 4 months unemployment this year.
A better option if you have savings is to collect the unemployment and defer the surplus check until next year. File early, you may get a refund with this option.
Read all the mountains of paper you get from HR. MTR program will tax 100% of what you are eligible to receive, but you only get half.
I would prefer they just tax it at my normal rate so I don't owe the taxes in April. I know. I could just set the difference aside.
You get back any extra when you file your taxes. No worries.
Could someone post a breakdown of what they got and what was taken out?
Should always depend on your income bracket. 22% in todays world, would be about right for me, but it varies based on your anticipated gross income.
The fact that AT&T employees don't understand how tax withholdings work explains alot about where our company is right now.
@pgo+1o5XBz31 So who ever worked 13 years or more will get 50% of their annual base salary. Like if someone is making 200k in a year then he/she will get 100k.
22% Fed Tax if ur severance pay is under $1 million and over that its 37%. State tax depends on each state, CA tax is 6%.
So we have inept people at payroll. My god , we really have hit the iceberg.
@djf+1o5XBz31 current policy is two weeks per year of server capped at six months paid out. So six years would be 3-month severance, and 12 years would be six months severance. But that policy could change at any time.
Does everybody get the same amount if you qualify for 6 month’s severance? There seems to be a “calculation” but I got the same amount as someone making almost double with the same amount of service time.
That's quite common on large one time payments. It will work its way out in the wash come filing time.
They took 32% Fed tax instead of 22% and I called HR and after that I escalated it to AT&T payroll, next day got the email that they will send the extra amount taken from my check on 8/21.