Any one have a clue why severance package was taxed 35%? Seems like the final screwing they can hand out.
8 replies (most recent on top)
File exempt before the layoff and get all the money!!! #Rookie
The amount of tuition above $5250 is taxed as ordinary income. If you were above the tuition rate while working for EDMC it was auto calculated and deducted from your paycheck...look at a pay stub, it should be listed.
Not strange, that's right. I was expecting that to come out of mine as well. What I didn't know was if you have the continued use of the tuition assistance program, anything after about $5250 will be considered income and taxed because you are no longer working for EDMC.
Severance pay is like bonus pay which it automatically taxed at 25% for federal plus, social security (6.2%), Medicare (1.45%) and if you also have state and local taxes, so you can look at having around 35-40% in taxes taken from the pay.
Anonymous 134149 Is correct, the rest of you are typical EDMC employees,, too stupid to know when not to answer something you don't understand---or maybe just too used to lying for a living--or living a lie by continuing to work and hide under your desks and watch this site
It's not capital gains ... You get taxed at a higher rate because the payroll processing application presumes that your biweekly pay was increased as a result of a salary increase that will continue for the balance of the year so it withholds at higher rate if warranted. You'll get the tax differential back with your tax return. Speaking from experience
Capital gains are defined as a profit from the sale of property or of an investement.
Severance pay per IRS at 25% witholding rate.
Student loan payments that ruin lives-sky's the limit.
Capital gains