Thread regarding General Motors layoffs

If you overpaid your taxes you'll get a refund after filing your tax return.

No hope necessary lol

They taxed mine at 38%. Anyone higher than that? I hope I get some refund next year.

I made an appointment with my tax pro after receiving my VSP payout email from a request I made with payroll, 1-800-584-2000.
Basically, the GM system thinks you now make this wage every two weeks and taxed accordingly. It isn’t a one time entry (VSP payout) added to our 6 months of employment, like I assumed, and taxed our normal rate.
He said buyout folks panic when they see this 37% hit and need to realize the tax is ‘withheld’ under your Soc number to be calculated at tax time, 2024. Based on no more income anticipated for 2023 (retired 7B) he figured my Fed refund to be $21,800 next spring.
Of course you could have averted the over tax by adjusting your W4 for that pay period, but he claims that’s a risky approach when dealing with a rather large sum of money and the IRS.
Hope this helps!

No, payroll showed a form that it used to determine tax bracket. It was supposed to show a bi-weekly check in one line and the next line multiplies that by 24. Somehow our entire buyout was entered and then multiplied by 24, then showing a very large yearly amount ($3+M) and with the max tax bracket being anything over $708,000, we were all put into the 37% tax bracket, in my opinion by mistake. I should have been in the 24% federal tax bracket with this check. It should have been lump sum x 1 ( not lump sum x 24) .
Check with payroll, I did and this mistake is not explained. Tax time should be interesting.

They taxed mine at 34%. The assumption is you would make this amount each pay, which would put you in the highest bracket. You should get a big refund next year.

You may have gone up a bracket because GM gave you so much money.

If they really took out too much, which they probably didn't, you'll get a nice refund on April 15.