I worked in corporate and was offered severance when I was laid off. Just had a paycheck hit today that should be the first of four paychecks, but it was $200 lower than my previous paychecks.
nothing in the separation agreement specified to a partial salary severance, anyone else experiencing this?
5 replies (most recent on top)
Going forward if you are getting a severance and getting laid off you should change your withholding taxes in the force it does work
The employer determines how severance is taxed. It is totally up to the employer's discretion. I have had severance taxed 3 times, once as regular withholding, and twice as a bonus. Again, the employer determines how to tax the employees severance.
Severance is taxed as "supplemental income" and is taxed at a higher rate.
I was not told either, when challenged, shockingly, no one in Corp knew that either
Hope you’re able to get by. Tritton’s severance is valued at more than $14.5M.
You are taxed a different rate. Look at the taxes from last paycheck to this one.