Leaving really isn't that bad of an option.
*Get to choose a better place to work,
-* Having a layoff in your work history makes people less likely to hire you.
*The dollar amount lost in not getting serverance is not much in the long term. Better to go to a healthier company and possibly make a ton off stock grants/options or a buyout.
some true points in this short post by @YDZvRF3-qlo
Yeah right, OP— Leaving really isn't that bad of an option. Sure, UNLESS IT’S YOU!
Nobody who still needs to work wants to be laid off, but if one is let go with a severance check with a 25% tax withholding, let it be in December. That way, one would be filing for a tax refund by February. Good luck to all in this transition. It’s the anxiety of waiting and guessing that is torture. Start your contingency plans now and don’t spent money on things that can wait.
Severance will be taxed just as a bonus would, and the IRS code calls for around 25% to the IRS. Then add the SS and Medicare tax and you will have around 32% off the gross amount. The good thing is that should cover you for the year as far as the tax man goes. I agree with one of the other post about staying on a Chevron with great benefits and a salary. That is better than a year's severance and the govt getting as much as they will. A god job is worth much more than the short-term cash gain. If you qualify for more than a year's pay that makes it a tough decision. People could do a lot worse than work for Chevron, and if they keep the buildings that will be a bonus. In the end there is going to be a lot more consolidation in the Permian Basin, and the majors are going to have there way. Might as well work for one. I still say one of the biggest issues is health care. A family of four can look to spend upwards of 15K a year for insurance in the market, and Cobra will not be much cheaper, but can be kept for 18 months.
Choosing to leave will not be an option for many Anadarko employees. The decision will be made for you. The brutal reality is that more than half of the workforce will lose their jobs. Just check the Chevron website for vacancies. They have plenty of people with the required knowledge and expertise for the Permian Basin. I have been through 2 mergers and you better start looking early for employment with another company or contact several recruiting companies.
Personally, I’d rather stay on after the acquisition and transfer into Chevron. Why wish to leave just to get paid a severance amount and a few extras? You’ll soon after need to start looking for a job that pays as well as APC or CVX with its great benefits. That’s not going to be very easy or likely. On the other hand, if you’re set to retire anyway, it’s a no-brainer—grab the severance and run.
Does the employee care? Is it included in their calculation of gross taxable income?
Severance is not taxed as ordinary income.
See Sec. 7 - Supplemental Wages on the link below.
https://www.irs.gov/publications/p15
Severance is taxed as ordinary income and subject to withholding. Large lump sum payouts can and may propel people into very high federal tax brackets of 35-37% depending on the timing of when the benefits are paid.
Nobody except the EC is winning the lottery here folks.