How is the taxes on the package calculated ? Wont all the money coming the package go into IRS ? Are there ways to protect the person in trouble ?
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@a8, if we have vaca time scheduled for around the holidays, do we cancel it as soon as we find, if we're rif'd so we can get it paid out?
@a7 severance will be paid out four weeks after the off payroll date (january 2026). unpaid vacation will be paid in december 2025
If we are notified on Nov 20 and Federal law requires a 60 day notice wouldn't the severance payout have to be sometime early next year?
I’m hoping I survive until 2026, because ‘25 payout will be mu---rous with taxes (especially if your spouse works also).
I was RIFed w/package in 2024, my package was classified as a Separation package rather than a Severance package, so for both Federal and for my state it was considered ordinary income, one very large paycheck that SS, Medicare, Fed, and state taxes were taken out. No Medical/dental/401k. The net real tax rate I paid on the final payout was just shy of 38%. As far as unemployment eligibility, that depends on the exact wording in your final package and what state you live in. I was part of the VZ sold off to HCL and then sacked by them, and in the case of those 5k or so people, the letters that we had to sign were written differently depending on the state you live in. In my state, because they specifically said in my letter that my position was no longer being offered in my geographic area, my state's rules say I got unemployment. In other cases, co-workers in other states had letters that were worded differently, and in those states because of the wording they were not eligible.
Ordinary and supplemental. Like a bonus. So if it pays in 25, we are cooked.
I recall total fed taxes are typically around 30% then you need to add state tax. 😭