Thread regarding Cisco Systems Inc. layoffs

Tax implications of voluntary severance / separation package?

Any idea how these are taxed ? If folks decide to take voluntary separation package ? How much are they offering ?

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| 2161 views | | 7 replies (last October 6, 2020) | Reply
Post ID: @OP+17hZ5wma

7 replies (most recent on top)

Half is gone

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Post ID: @1msg+17hZ5wma

You get the pay 30 days from notification so it will be 2020 income. It will be 3 months plus cobra and a week for every year over 10. The standard package. RSU accelerates 6 months or so.

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Post ID: @cej+17hZ5wma

6 months?! If that's true, I better get an email on Wednesday...

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Post ID: @rll+17hZ5wma

That would be hard to have already taken it when it hasn’t been offered yet?

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Post ID: @yuq+17hZ5wma

Shouldn’t you have figured that out -before- you took the package?

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Post ID: @lfd+17hZ5wma

Heard it is 6 months for voluntary severance payout which is pretty good to get out of this sick company. yes if they payout in Jan it will be good from tax point of view

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Post ID: @mfo+17hZ5wma

I suggest you talk to your tax person. For gross planning, I assumed 50% is what I would get from the payout, with some refund after I get my taxes done. Keep in mind there are penalties if you do not have enough withholding taken out now.

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Post ID: @pgy+17hZ5wma

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