Anyone know if you can negotiate at all the let-go date? Taking a lump sum near the end of the year after you already have income will not bode well for taxes... (Canada)
2 replies (most recent on top)
And I agree, getting a lump sum of money dropped on your income at the end of the tax year isn't good. It's probably a good idea to talk to someone re tax obligations and how best to deal with that big sum.
You'll probably end up in a higher tax bracket. Luckily because this was an unexpected income, you won't have to pay a penalty for insufficient tax withholding because Cisco will withhold taxes. I don't recall having to make quarterly estimated payments the next year.
Due to Cisco withholding a ton (I don't recall the exact percentage, but it was too much) I had far too much withheld and I had a huge $17K tax refund that year. Unfortunately, that was the year someone stole my identity and filed a bogus tax return before I did and it took 22 months to get my tax refund back.
From past experience, I am going to say you cannot negotiate the end day.
What I can say is I know dates did get extended (by Cisco itself - LR earlier this year and end date kept being moved out due to COVID) - I know folks from prior LRs who were in the middle of being offered another role at Cisco and due to that, extensions were granted as in some cases, folks needed just another week, etc.
I wouldn't count on anything that works in your favor. And I agree, getting a lump sum of money dropped on your income at the end of the tax year isn't good. It's probably a good idea to talk to someone re tax obligations and how best to deal with that big sum.