So my severance looks really low. I was making $15/hr and got 2 weeks worth. My severance after tax was $600. That seems really low. Usually with 35hrs/wk-40hrs/wk my paychecks would range from 750-900.
Does anyone know how many hours they went off of?
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Would like to update, they took too much from my state tax and owe me $110 more dollars after calling HR
They will with hold .27% in math terms if you wish to get a good number of what you will receive from a lump sum pay out. In other words times you’re normal pay by .27 to find out your take home pay
Be sure you are talking severance and not transitional pay. They can be taxed differently. If it's a lump sum it is severance and you are separated from the company. If it is paid out in installments it is transitional pay and you are not technically separated from the company until you get your last payment. This is as per a labor attorney.
Yes..it is not up to the company how to pay severance. They HAVE to pay according to the law. Also be aware there are no laws saying severance is required. So BBB did not have to pay any severance.
Grow up and read before you say you are getting screwed. What happened to us stunk but....
severance payments are classified as “supplemental wages,” which have their own tax policies. Employers are required to withhold 22% of the severance wages and pay the money to the IRS. In 43 states, state income taxes will also be withheld from severance payments.
BBB is screwing you just like Sears screwed us. They do not have to tax it like a bonus. It is the company's option. They can tax it like regular earnings. They are adding insult to injury just like Sears did to us.
They tax it like a bonus...
Also based on a 35 hour week
It’s your taxes. About 22 % fed. Whatever your state is and about 7.65 for ss and Medicare. Severance payments are withheld at a higher rate