Can’t believe I’m being paid 6 months pay because I declined to move. I was once worried but I’m so glad I declined. I’m so happy to be let go with a huge paycheck.
6/25 is almost here!!! I can’t wait!!!
34 replies (most recent on top)
Verizon is giving 1 year severance. Good job Verizon.
"bonuses are taxed differently than salary."
Maybe for withholding purposes. But come the end of the year my bonuses are mixed right in with regular wages.
bonuses are taxed differently than salary.
"There is no such thing as a “bonus rate”.
"It’s income. It will be taxed as income according to your tax rate. "
Withholding for severance is done at the supplemental rate (ie, same as bonuses) which is 22% for federal. State withholding is obviously based on the state you live in. Based on your overall income, 22% withheld may or may not be enough at filing time. For most people, it's more than enough and a refund will be due.
What you can do, a few weeks before you get your paycheck, change your w4 to Exempt. You'll get most of your money. Put about 20-25% away for Tax season. It's a lot better than paying the 40% they would normally take out due to it being a "bonus".
I do not think this is true. In prep for my severance (I am a member of the 7/9 class being notified tomorrow) I looked into this. From what I have read, the severance check will be taxed regardless if you have noted Exempt on a W4. If you can, provide me a link for reference. I may defer mine, so there is time to change my w4.
It’s income. It will be taxed as income according to your tax rate.
Not sure this is true.
Taxes on your bonus can be withheld on your paycheck in one of two ways: the percentage method (22%) or the aggregate method. The aggregate method is a more complex way of calculating taxes that involves adding your regular paycheck amount to your bonus amount and then taxing the total.
“I have no plans to reinter the workforce.”
You wouldn’t have many options with spelling like that.
Thanks a$$hole.
It's crazy how many people equate tax withholdings to actual tax rates.
“I have no plans to reinter the workforce.”
You wouldn’t have many options with spelling like that.
Got out last November with my 6 months severance!!! Best thing my manager ever did for me.
My manager will be gifting me a surplus notice on Tuesday. I have no plans to reinter the workforce.
"The paycheck will not be as huge as you think because it will be taxed at a bonus rate, and not your regular SAW rate."
Where do people get this nonsense? Bonus rate?
“…it will be taxed at a bonus rate…”
There is no such thing as a “bonus rate”.
It’s income. It will be taxed as income according to your tax rate.
In response to:
"The paycheck will not be as huge as you think because it will be taxed at a bonus rate, and not your regular SAW rate"
This is true.
What you can do, a few weeks before you get your paycheck, change your w4 to Exempt. You'll get most of your money. Put about 20-25% away for Tax season. It's a lot better than paying the 40% they would normally take out due to it being a "bonus".
Just my opinion ;-)
"You have gotten better than a lot of managers who were rebadged to another company, trained their replacement then, let go within a year at the new company severance policy."
That's correct for most of the outsourced employees. But when I was rebadged to IBM in 2019, I was offered a NDA from T's HR, stay at IBM for at least one year to help transition, I would get paid for 16K a month for 12 months. After working at IBM doing nothing for that year, I got unemployment and an 192K check from T minus taxes.
The paycheck will not be as huge as you think because it will be taxed at a bonus rate, and not your regular SAW rate.
All I see doing work are non union. When is the union going to get their trucks and little eco friendly cars back on the road and claim these jobs?
If they'd rather keep us around doing nothing (as you seem to think) for full pay rather than a buyout then that's fine with me too!
You have gotten better than a lot of managers who were rebadged to another company, trained their replacement then, let go within a year at the new company severance policy. Yet another stab in the back from Stankey and company, cheating long term employees out of their earned severance by using sleazy tactics.
“This isn’t the real reason you are being surplussed.”
You are right. They are coming for everyone.
“because I declined to move.”
This isn’t the real reason you are being surplussed.
OP-
Congratulations!
Brighter days are ahead!
At least you’re getting away from Toxic T!
"Only Legacy T gets 2 years pay...."
Midwest/District 4 severance can be up to 88 weeks pay. Not quite 2 years but close.
Only Legacy T gets 2 years pay and there’s not many left of them. Also I think Att won’t lay them off because of this high cost. Job security but no severance. California district 9 gets quite a bit more than other legacy S wireline contracts. I think they are trying to negotiate that down right now. District 6 techs get 47k voluntary and 80k involuntary if they have 30 years. Tough to get involuntary.
“ Crazy managers try to flex....."They won't lay you off because of your union severance." Uhhhhhh. Yeah. That's the point of it.”
Another union goof clapping for the piano player on the Titanic…
Better financially to keep you working than to lay you off with two years pay.
Got out last November with my 6 months severance!!! Best thing my manager ever did for me.
I can’t wait either. Got a better job lined up. Using a little part of the severance to take the family to Hawaii for 2 weeks. Invest the rest. Life is good!
Don’t spend it all in one place
Crazy managers try to flex....."They won't lay you off because of your union severance." Uhhhhhh. Yeah. That's the point of it.
No idea who they are using union technicians for. All I see doing work are non union. When is the union going to get their trucks and little eco friendly cars back on the road and claim these jobs?
Congratulations!
Yeah, right...our severance pay is 2 years, but unfortunately, we're not being laid off because T seems to think there is an overwhelming need for technicians. We won't be collecting our 2 years pay or passing Go, so it's a moot point!
I’m a manager. Max is 6 months.
6 months pay? Our severance is 2 years pay.
Amen!