Thread regarding AT&T layoffs

Severance pay deduction guidelines

What are the Severance pay deduction guidelines?

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Post ID: @OP+13WY9VBZ

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As a former manager, severance, accrued vacation, bonus, etc..., its all taxed at the max rate. Along with the following years prorated bonus, including Social Security, and Medicare, depending on which month you left.

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Post ID: @rra+13WY9VBZ

https://www.forbes.com/sites/robertwood/2017/09/27/heres-how-irs-taxes-severance-pay/#6f5fceca311f

You may get severance pay when you quit your job, are laid off, or fired. You also might get severance later if you sue and settle. Whether or not your pay is labeled “severance,” and regardless of when it is paid, the IRS generally views severance like any other pay. It’s taxed as wages, so is subject to withholding and employment taxes. If your employer hands you a severance check as you walk out the door, you may well expect it to have all the payroll deductions you’re used to seeing on your regular paycheck.
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