When Oracle sends out the severance and vacation pay, does it deduct Fed, state income taxe as usual? Or do they not deduct the taxes, so we have to pay the taxes later when we file our returns?
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I’ m in CA and tey take out nearly 40% taxes, which is the standard taxes for Federal, State, CA SDI, Medicare, etc.
The large deduction percentages is due to additional withholding for large lump-sums so you should get a good portion back as a refund when you file your tax returns.
They deduct lot of taxes, I heard up to 45% of total amount,you end up with 55%
You'll get it back, depending on your circumstances, and if you don't then we don't feel too bad for you because you.
At this time of the year, you are only giving Uncle Sam a few months interest free loan anyway.
They deduct lot of taxes, I heard up to 45% of total amount,you end up with 55%
Just tagging it for other folks
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Question about taxes on severance and vacation pay
When Oracle sends out the severance and vacation pay, does it deduct Fed, state income taxe as usual? Or do they not deduct the taxes, so we have to pay the taxes later when we file our returns?
They take all taxes out. You're better off when they do.