count for pension and 401(K)??
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internal web site Q&A notes it's not "benefit bearing" and implies 401k not impacted pro or con. Need to double check for sure but I'm thinking no contribution or 8% match. Good news is many by July will hit SS max for ~7%
For tax purposes yes, it is ordinary income. The witholding is another topic, it has the 22% withholding as explained before.
1kkq, Chevron doesn’t have to give you anything. Grow up, and fast.
They are required by the IRS in the US to withhold the 22%. It’s the minimum to be withheld for anticipated taxes - just like if you won money on a game show or in a lottery. At the end of the tax year, you’ll have to have a tax advisor determine if too much was withheld (and you’ll get a refund) or if too little was withheld (and you’ll owe the IRS). If you are taking the lump sum severance, please speak to a tax advisor.
I think there is a need for increased severance of 3 weeks from 2 weeks.
@smh, Well explain and correct. The gross severance amount will be reduced by withholdings tax at 22% federal income tax rate, plus additional withholdings for FICA, Social Security, and your designated contribution percentage toward the ESIP 401k. However, there’s no company match to the 401k. You may want to think of lowering your ESIP contribution percentage to 2% before receiving your last regular payroll check. This way when the severance is paid, you will receive as much as possible.
It is not considered normal pay, but rather a lump sum payment similar to your CIP.
This means it will be taxed at 22% federal, Fica (with applicable caps), plus state income tax if you live in such a state.
It will not increase your pension value (which is based on the formula). Your 401K contributions will be taken. I don't think they match the 8% contribution, but I may be mistaken.