Was RIF'd in November. Severance hits before EOY... 45% taxed. Looks like it's being taxed like a bonus. That 12 weeks of severance pay now plays more like 4-6 if you stretch it.
Purpose.
12 replies (most recent on top)
More alarmed by this id--t who doesn’t get many people work in many areas and are at different parts of there career. Very very alarmingly low EQ being displayed.
The number of people posting here with seemingly Zero financial knowledge is a sign of how screwed SunTruist really is. You Teammates work for a financial institution. How can you be so financially illiterate?
LTI plays by the rules when accepted so different grants may behave differently. Take note those agreements changed in a substantial way last year.
Withholding is not taxes.
I think you also get LTI if you quit/retire on your own after you are eligible for early retirement which is once you reach 10 years of service and are over 55 years of age.
Regarding LTI, the differentiator is the cause of separation. If you choose to leave or are terminated for cause, you forfeit any unvested award (this is the point of LTI after all, to give you an incentive to stick around). If you are RIF'd, your awards will vest normally as scheduled.
Previously, if you were RIF'd your LTI awards all vested immediately and you didnt have to wait for the scheduled vest. But, this was changed sometime in the last year or so. You get to keep the award, but they dont have to pay execute it all at RIF date.
Hope that helps.
Does LTI equity continue to vest if you are RIF'd? Or do you forfeit it?
I've seen language in one document that states clearly that if you are not with the company on the date of an award then you forfeit it. And in another document it states that if you are RIF'd then your equity will continue to vest according to your award's schedule.
Actually - depending on how much your severance is -(and your overall total income) paying severance in a lump sum like they do and having to count it all in 2023 can push you into a higher tax bracket and you'll pay more taxes than you think or would have had it been paid in 2024. That happened to me. It would have been kinder (ha-ha) if they gave you the option to have it paid this week (in 2024) - since likely there will be some unemployed time and 2024 income will be less than 2023.
I would have been happy to be RIFed. This is not a place for a career.
You think they care if your family can eat?? Truth is you are just a name on a sheet of paper. Treat your job the same and you will get more out of life.
Each paycheck is taxed as if you make that much each paycheck. It works this way everywhere.
The difference will be returned when you file your taxes.
And for those wishing for severance, not everyone gets 2 weeks per year of service, some get less. Is the rate based on your current salary? Or last year’s? Read the details and do the math. Prepare yourself for the extra taxes you will owe and the very high cost of health insurance. I wish everyone the best, it’s a tough job market out there right now.