I've been at the company for about ten years and was told I would get about 10 thousand bucks. Is this taxed? And how long does it take to get the money?
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Basically this if no other taxes are imposed by state or how you file.
Estimated*
18 weeks (8+what i earned from service hours) × $16/hr. I have 11,670* before taxes.
With the specific severence calculations which are not the same as regular income for services rendered (you actually working. Severence is supplemental pay an subject to its own taxes), i will come away in the range of 8092. All of the medicare blahblah are taken before the flat 25% rate.
This can vary from state to state.
However, I am also due another full paycheck this friday. And PTO. Plus what I worked before I got fired..so it will be closer to 10000 at the end of it all.
And i will be getting unemployment.
http://www.lorman.com/resources/irs-provides-guidance-on-proper-income-tax-withholding-for-nine-common-supplemental-wage-payment-scenarios-15236
It is taxed like income.
Read on forbes or the IRS website.
Dont go blow the money on stupid crap.
The Courts ruled that severance is subject to tax under the Federal Insurance Contributions Act tax.
FICA consists of Social Security tax and Medicare tax.
Employers pay:
Social Security tax of 6.2%
Employees also pay 6.2%, or 12.4% total.
Add to that the 1.45% employers pay for Medicare and another 1.45% for the employee.
Your wages determine your tax bracket and affect those numbers.
I never made enough to break 15%, but enough time to make it worth it to leave immediately with severence.
Some states, like texas, do not impose a state income tax, sorry for those of you who have one..thats just another blow.
Good luck asking a PBS about taxes for these cases. Mine couldn't answer a damn thing about that. Hell, our PBS wasn't even involved with all this paper work. Only the STL. I have so many questions and no one has answers.
ask your PBS, not this website.
Severance pay is taxed. It is best to talk with your PBS or STL in regards to how much. It is usually around 40%.
I you are trying to get through on the phone to Austin TX, forget about it-their phones lines are backed up therefore won't return your call
Tax depends on how much you are paid and on state taxes. 10K check would translate into 20K/month income, which would translate in 33% income tax group. So, your federal tax will be 33%, plus 7% in social security, plus your state tax (in Cali they'd hit you at 11% on that amount). There is a few other things they pile on, maybe 2 or 3 percent. So, 33+7+11+3=54% in California... But if your check is 5K as it'll be for some folks, that number drops to 25% or something like that....
This is not the place to get solid info. Talk to your Team Member Services.
That seems wrong should be a lot more and its 40% taxed so yeah not good sorry