To anyone that’s had a severance. I have been told after 60 non working days and accepting lump severance payment accepting a job elsewhere is fine. Only if you go back to WF for another job does severance need to be repaid. Anyone have insight?
10 replies (most recent on top)
@a6 how long did it take you to receive? I cannot imagine it actually taking 60 days only because the calculations would change daily.
Already in highest tax bracket, so took lump sum. Found a job during my 60 days but negotiated start date to severance period. Will be double dipping for months. Great to be out of the toxic WF.
You guys need to understand the difference between tax withholding and taxes. If you get laid off today and you start severance two months from now let’s say you are finished this year of six months. Say it is 60k. So you get 10k per month with withholding on the irs schedule the next six months. Say instead you take lump sum, you get 60k and your withholding will be higher. At end of year your taxes owed on that 60k will be same. Most don’t take lump sum due to higher withholding but if you have another job you don’t care about withholding.
You are correct. If you take a job elsewhere you keep the money.
Lump sum can get taxed at a higher rate. Also medical
Does not attach to lump sum.
I requested lump sum and had it before the first planned severance, so less than 2 weeks.
First, all of this is easily found in the benefits book under the severance plan. Asking here is just giving yourself the opportunity to be cheated by misinformation.
You can choose to receive the remainder of your severance if you accept a new job. WF will not know if you take one outside of the WARN period, so you could keep the payments flowing and be getting paid from a new employer until your severance ends. This is honestly your best-case scenario.
If you return to WF, your severance payments end. This should be obvious since you're no longer severed from employment at WF.
If you take a lump sum, you're gonna give up a lot of that money in taxes, as the formula requires calculating your annual income as 26 payments of the lump-sum payout when they process it. It is taxed similar to an annual bonus paycheck.
But don't take my word for it. Go read the severance plan. Knowledge is power.
I just requested a lump sum payout of my severance, does it really take 60 days to get it? any one that has gone through this? I’m way past the 60 day notice and I have a new job.
That is correct.
you would need to return a prorated amount.