Hi I've been with the company for about 4 years. I'm in ATS org and with all the chatter around layoffs I'm curious what the severance packages for level 2 or level 1s are like. I have about 4 yrs here. I do enjoy my work but with all the layoff talk I'm nervous.
17 replies (most recent on top)
3 free long distance calls and a handshake
Plus you qualify for Unemployment
Former 2nd level here, took Management Voluntary Offer (had made MR75) in late 2020. 2 weeks pay, per service year till 26 weeks (six months pay). For salaried employees you sign a document on your last day of work that you will not sue the company for unlawful termination to be eligible for severance. You then have 90 days to file the simple severance form, which takes about 30 days to process.
It is taxed as regular payroll without 401K withholding (so it 'more' tax, because 401K is tax deferred).
Some people may perceive it as higher tax, but you also have to think of the timing. Suppose you worked till October, left and immediately filed for full 6 months severance - all of a sudden you have 16 months income in one calendar year.
In my case, left in September 2020, filed severance for mid December 2020. Severance deposit in January 2021, then just regular W-2 for severance payment in 2021.
The bonus is for 2022, paid in 2023. You’ll get your bonus. It won’t be prorated.
Okay. So what about performance bonus from the previous year? If you are laid off in 1Q2023 and bonus hits a few months later - is it "no bonus for you! You are not an employee"? Or "well done in 2022! Here's your bonus!"?
I'm guessing "no bonus for you!"
1 week for every year of service up to 26 weeks. So you would get about a month pay.
It is taxed a bit higher when you receive it but you would probably get some back when filing yearly taxes...just like bonus.
Who cares if the severance is taxed at a higher rate when paid out? At the end of the year, the only thing that matters is your marginal tax rate. If that is lower than the tax rate applied to your severance, then Uncle Sam will refund the difference to you at that time. If you are financially hurting so bad that you can't wait for that, then you have much bigger issues than a potential layoff from AT&T.
" I never heard the word layoff or surplus since and I am working on the state of the art technology. "
Gee, let's go down the list. Google? Layoffs. Microsoft? Layoffs. Facebook? Layoffs. Amazon? Layoffs. Twitter? Layoffs. HP? Layoffs. I just can't guess which tech company that is.
4yrs will probably get you a quarter and the 🥾
ATS lol - sorry you got hired on you should of came to this site before hand. My only advice is run far far far away. Left ATS six years and so glad I left. I never heard the word layoff or surplus since and I am working on the state of the art technology.
When you leave you see how other companies are ran and you realize how badly cesspool att is managed.
Att is a joke of a company.
Maybe you should go look on HR one stop at the management severance plan.
It used to be that they allowed for one or two months to look for internal openings then the sev pay would kick in if you couldn't find anything. I'm not very sure.
Remember if you are surplussed you only have 2 weeks till you are out the door.
Severance is only taxed at a higher rate if you take it in a lump sum. I believe you have the option to get your severance pay as regular pay checks until it runs out.
Two weeks pay for every full year of service, up to 26 weeks. No pro rated years.
Thanks, Im the OP, I saw someone else asked the same question a few hours ago. Looks to be 2 weeks per yr. So 4 yrs is 2 months of pay, but taxed at a higher rate. Maybe I should adjust my w2 if I get hit
I think the severance is only worthwhile if you have a lot of years. It will also be heavily taxed.