Thread regarding Bank of New York Mellon Corp. layoffs

Under a SUB Plan, separation payments are treated as “benefits” rather than as “wages,” and are thus exempt from the payment of payroll taxes (FICA, FUTA, and SUI) for both the company and the benefit recipient. This reduces the benefit costs for the employer while ensuring slightly increased take-home pay for the displaced employee. Check out this link for a very detailed but helpful discussion: https://www.transitionservices.com/guide-supplemental-unemployment-benefits-plans/. Bottom line is the SUB plan saves the company a lot of money.