Can someone explain what % the severance is taxed? And if they take both RRT1 and RRT2 taxes out of it.
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Does anyone know if the maximums for T1 and T2 are in play with salary and severance. From what I've read on RRB FAQs it sounds like it does. My offered severance would put my at the maximum of T2 almost immediately, and at the max of T1 with a little extra.
Mine was like $75 severance, $21 bonus and payment received was $68K
Expected was 63500. Actually received around 44000.
85K between the severance and "bonus". Total "net" 59K. They will take state, federal, RR-I, RR-II, Medicare, etc. out of it. You will not be eligible for RR unemployment until you reach the end of the severance you received.
@W3V4Tqu-1utk Is this from last year? Did your termination letter state you would receive the “gross” amount yet they took out at taxes or was there no mention of gross or net? Allegedly severance will not be paid until January which doesn’t make any sense how unemployment can be denied if severance has not been “received”/paid.
Basically the "Bonus" is covering your taxes... to me it was a little more than the severance payment.
All concepts had Federal Tax, RR Rtmt Medicare, Railroad Rtmt Tier1, Railroad Rtmt Tier2. (If you live in a state with state taxes you have to deduct that too).
Also as another member explained we are not entitled to unemployment because we received severance (RRB Manual) that is correct check the website.
What was your severance total? If you don’t mind me asking. I know a lot of people are anxious and trying to come up with plan B.
Not unless they gross it up. My letter also says that I will be paid the gross amount of —-.
You will not get the gross amount. Taxes will be withheld. All in, expect 60% of what you got in your letter.
Usually it's 22% for federal, 5% for Nebraska, and both Tier 1 and 2 are withheld as well.
My letter says that I will receive $X in the “gross amount”. That being said I am expecting to receive the exact amount that was on my severance letter except for the bonus which will likely be taxed as usual. Any idea when they’re paying us out?