I've heard that people usually get a third less than expected when they finally receive their severance payment. Is this true?
I can just imagine the shock of first being laid off, then coming to terms with it because you are counting on certain severance, and then finding out it's not nearly what you expected.
To the OP a) you need to take professional advice b) you make no comment on where you are located. The assumption is that you are American and therefore have no real understanding that there are in fact other countries in the world. See a)
In the UK the 1st UK£30,000 of a redundancy payment is tax free.
55%
Taxes take 4 out of 10 peanuts you got from Cisco
If you really need to ask that then you deserve the axe. Ever heard of Google or HG Block?
I think like lots of lump sums they are taxed at a rate that assumes that is your normal pay. But my tax refund this year is almost 2x what it usually is, so it worked out in the long run, though I know some people prefer getting all their $$$ up front (hoping to avoid a digression about the wisdom of getting large tax refunds).
I'm based in San Jose and the took -40% of my paid out PTO. Close to the same for my severance. Go see an accountant and have them model it. You'll get less than you think.
It depends where in the world you are. Get advice from a professional external to Cisco (and don't believe any of the cr@p you get on this site).