I just got my first package.. (finally after 2 weeks) paid correctly for 1 week for every year. All the mumble jumbo about taxes is like brain surgery. What is exactly taken out, I see the flat rate of 25%, but are state taxes taken out too? As there putting it, I’m going to get taxed to death, I’ll be left with hardley anything.
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People rarely understand how income taxes work. All that matters is how much you make for the total year. Pay too much every paycheck, and you get a refund. Pay too little, and you owe. How much your total bill is depends totally on how much you make. If you'll be making less for the remainder of the year, have them take the minimum amount of taxes out, or claim exempt if possible. You don't need a big refund later. You need the money now.
Thank you for the info. I did get another job, but much lower pay. I’m hoping to get back from lowes as much as possible right now because I have no choice and deal with the conciquences later.
Severance is treated as income and will appear on your w-2 If Lowes gets it to you (2019) They withhold at a flat 25 percent, but if you remain unemployed your taxes will be less so you should get some of it back. A better job right away will bump your tax bracket and cause the payment to increase your overall tax bill....Lowes however gets a huge break for such payments! WinWIn for you know who! Good Luck!
Depends on your state severance law as far as I know.