Does anyone know what percent of taxes is taken out on a non-management severance check?
7 replies (most recent on top)
Don’t forget 10% union dues
I was surplus 1Q2019. The formula that HR gives you is very accurate. The amount has a few variables like your W-4 and what state you reside in.
My frame of reference is about a person who left with severance as craft in 2003. His check was for close to 30,000.00 and his net was 17,000.00. I do know they combined vacation pay out, his regular pay and the severance on one check.
Who cares?
All together about 40%
Your withholding on a lump sum severance payment will be at a flat rate of 22 percent. If you receive severance pay, bonuses and other supplemental income in excess of $1 million, tax will be withheld at a rate of 37 percent.
Deduct state tax, social security and unemployment tax
20% Federal tax