For PSG25, can EOI payout be delayed to 2021 tax year?
What are my options to delay the payout?
16 replies (most recent on top)
Now we know the real reason why they upped the Sev to 3 weeks. It's so many the people being pushed out now on R2 can claw back the extra taxes they will have to include on their 2020 taxes! ahhhhhh penny drops
If you are in Round 4 , the Notification is October 19th, so the rules say there is 60 day period to sign the release , so as long as you do that at the end of the 60 day period after termination of employment that should easily take you to after Dec 16th therefore the severance will come in 2021 Problem solved! if you are doing EOI I believe the oct 19th date still stands.
Here is the REAL information
"The only control you have in the timing of your benefit payment is when you submit your completed Release within the 60-day deadline after your termination of employment. The date you submit your completed Release is when the 7 day revocation period begins. Your payment is then processed on the next applicable payroll cycle after the revocation period. In the event that your 60-day review period does not end before December 16, 2020 or if the Release waiver is returned after December 16, 2020, then payment will be made in 2021. Severance payments made January 1 or later fall into the new calendar year’s income for tax reporting purposes
I asked HR and they told me they could delay the EOI payment until 2021, they would follow the law in whatever tax jurisdiction you are in. But like it is said below you will likely not get it until next year under normal conditions. When have you ever known HR to do anything fast, lol
25 has not problem, as they can post in round 3 very poorly and then post EOI in round 4. 26-28 will need a bit a luck, but EOY accounting locks should help.
It's a date game, there is a good chance if you time it properly.
Round 3 (PSG25-27) - Notification starting from Sept 7
1) 6 weeks redeployment until 19 Oct
2) 60 days to sign release until 18 Dec
3) 7 days revocation period until 25 Dec
4) Severance payment next 1-2 payroll cycle, Yes you make it to 2021
Is 6 weeks redeployment applicable to those who express EOI?
All of this information is on the websites they’ve created. It will be a date game and will depend on when you are notified and start redeployment. Once you are notified you are left standing, and IF, you are not eligible for another round, you’ll start your six week redeployment. Once that ends you’ll have 60 days to sign and submit your severance paperwork. There is a seven day holding period once they receive it. Then it can take up to two payroll cycles to get your money. It’s all on the website. It’s all there for the reading. There is also an email for questions and they are very responsive. Good luck. The last round PSG24 and below will have the best chance of pushing it to 2021.
Round 3 (PSG25-27) - Notification Sept 7
Round 4 (PSG 24 & below, + PSG25 not selected) - Notification Oct 19
For PSG25, if you are smart, there is a good chance that you will be left standing at round 2.
Then, you will be considered for round 3 at mid October. If you press EOI or play smart again, you might pull it through with the 60 days in submitting your paperwork.
Well, there is always a risk but chances is low this time with so limited positions
@1mbc is correct. It depends on how late you can hold off until your severance papers must be returned. Return the properly completed and signed waiver papers back to the correct address by FedEx overnight. Your tracking number will serve as proof when it was mailed. You can also count on the extra time it takes for payroll to receive the severance instructions from legal and process the check. The severance check can take between 1 and 2 payment cycles to be cut, so that will add 15 days to 1 month after your waiver papers were received by legal. If the timing of all this takes you into next year, you’ll delay the taxes owed on severance wages to your 2021 tax year. Just remember Uncle Sam will withhold 25% in federal taxes from your net severance check, but you can count on low taxes owed that year or maybe even a refund.
Only if you get your severance paperwork mid-October or later. You have 60 days to return the paperwork, if you can delay signing until Jan. 2, then you’ll be paid out in 2021. That’s how it worked in 2015, I bet Chevron avoids that this time around.
You best discuss with your tax accountant. Sounds like if you met all conditions to receive the bonus in 2020 (left CVX), it is likely income to you in 2020
If your exit date is in late October, you may be able to delay till 2021 for the payout.
How does someone make it to PSG 25 and not be able to find the answer to that question on the Chevron web site?
There are no options. They want you off the books in 2020, so you just have to bend over and take it.