For those that were part of the first group I have a couple of questions: what rate was your vacation payout taxed? What rate was your VSP taxed?
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Yeah, the VSP looks good on paper but has a HUGE "gotcha" on the tax part.
The supplemental pay withholding rate is 22% (for federal). That would apply to your severance. Vacation pay is your regular withholding. State taxes depends on your state.
24% is the standard federal withholding for any non-standard pay... but your overall tax rate may be higher depending on your overall taxable income for the year... so you may still end up owing the IRS when you file your taxes.
24% Federal Tax and 5% MA State tax.
They were both taxed at 22%so be sure to stock some of your payout away for a significant tax payment.
Almost 40% total state and federal, on the rim out the door. Nothing like watching 100K turn into 60K
You’ll find out soon if you took the package.