I got laid off in August after 18 years of service. I received a notice from WF the other day informing me that starting 1/1/22, the 'salary continuation' I had will be considered 'severance'
I have to speak with an advisor about what this really means but are is there anyone who understands what the difference is?
You need to investigate/ research this the best you can to ensure you get everyrhing you can. In general banks started putting people on salary continuation b/c if ur receiving a salary you can't file for unemployment. They hope you find another job before the continuation runs out so you don't file unemployment which makes their costs go up. There also used to be some tax benefits to pure severance - e.g. in NC the first $35k in severance was tax free from state income - not sure if they still do that - but my point is research what's available and file unemployment as soon as you can.
OP, you answered your own question.
"I have to speak with an advisor..."
This is a layoff rumor website populated by anti-science trolls and angry employees.
Maybe not a great place for tax advice.
FYI, a few years ago when we had a lot of medical bills and a small inheritance, an advisor gave us great advice on how to do things and when to do things.
The when can impact your taxes.
But we spent a few hours with them, they had to review old tax returns and understand our bills and income.
Good luck, and don't ask us internet randos for anything this important.
Speculating entirely, but I wonder if that will effect any healthcare benefits (and cost associated with them) that you might still have? Is there a difference in the cost and/or coverage based on whether you're on severance or on salary continuation? For some reason I think that there might be. Again, not sure but something you might want to look into.
In Canada and UK an EHT, Employer Health Tax is charged on salary continuation payments but NOT on severance payments. Maybe Chucko and crew are anticipating the US may do something similar or maybe layoffs are coming to WF workers in those countries. Just speculation....I know nothing, nothing!
Nope - runs out in June 22. I know taxes are calculated differently but don't have the details yet. I assume there is a benefit to WF and not so much for me.
Is that when your last month of pay was supposed to happen?