I have already received mine and it was taxed at a normal rate. Not 40%.
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Well someone had never really done taxes before..lol...
Severence is considered supplemental income, not regular pay, and is taxed differently. The 8 week pay on lieu of noticed was taxed like regular pay (including and pre and post tax deductions like benefits, 401k, etc)
The rest of your severence is taxed as stated by a previous responder.
Stop whining...seriously.
well that is dumb and gay
Yap..uncle Sam likes the green notes too even in death!
Ummm 653 is about 32% of 2000. How do I math?
Step 1
Determine the severance pay amount due to the employee. For example, if your severance pay equals $50 per month and the employee has been working for your company for 40 months, the amount you owe to the employee for severance pay is $2,000.
Step 2
Multiply the severance pay by 6.2 percent to calculate the Social Security deduction. For example, $2,000 times 0.062 equals $124.
Step 3
Multiply the severance pay times 1.45 percent to calculate the Medicare tax deduction. For example, $2,000 times 0.0145 equals $29.
Step 4
Multiply the severance pay times 25 percent to determine the amount of tax to withhold if you pay the severance pay as a separate payment from his regular wages. The IRS states that if the payment is separate, you must calculate the withholding at a flat rate of 25 percent. For example, multiply $2,000 by 0.25 to determine the severance withholding to be $500.
Step 5
Subtract all deductions from the employee's severance pay. For example, $2,000 minus $653 -- the total of all deductions -- equals $1,347.