My severance was taxed at 37.5%!!!!!!!!!!!!!!!!!!!!! Is everyone's that high????? If so, do you know why?
15 replies (most recent on top)
@OP I'm in CA and my VSP was taxed at 41.18%, I thought it was going to be taxed the same as a paycheck. What a joke.
@ak Centene know exactly your withholding status. You told them on form W4.
@ac It's a good thing that no one on this layoff board really cares about what you think. If you don't have anything positive to add to the conversation, then how about you just STFU. People's lives have been turned upside down. Your stupid comments aren't needed or wanted.
@OP Mine was taxed 40%, my jaw hit the floor, and I am exempt on my W4 -0 federal tax liability, but that does not apply. Severance is not taxed as your regular income but as "supplemental income" using standard witholding rates and not by what our W4 election is, as I was told by the Severance Department.
I agree with @OP. The IRS doesn't tax severance differently from the wages you earn throughout the year. The difference is that employers often withhold more taxes from severance checks up front. When you file your tax return, it's all combined as ordinary income. If too much tax was withheld from your severance check, you'll get that money back when you file your tax return. Of course, you're without that money in the meantime.
@OP it will all average out at tax time though
@af won’t that hit you hard at tax time?
They are legally required to tax your lump sum at the highest bracket. They (Centene) have no ideas of your filing status or what other income you have. If you aren’t in that highest tax bracket, you will receive a refund when you file. File as earliest as possible.
I went in and change my taxes to excempt. They took out taxes,but it was appears as if it was only about 10%.
22% federal, 7.65% FICA (until soc sec max), x% State income Tax.
These taxes are needed to fund the profit Centene makes from the Affordable Care Act.
Once again, the questions being asked AFTER accepting the buyout astound me.
The funding necessary for waging war on behalf of Israel has to come from somewhere.
Thank you for your patriotism.
At my last place, you were given the option to take it as a lump sum vs getting paid bi-weekly until your severance ran out. Most people took the bi weekly for this reason. Sounds like centene didn’t give that option.
@OP Yes unfortunately that is the norm. It’s taxed at a higher rate, kind of like a bonus.