Keep hearing it is possible to delay getting the severance until 2016. With the 60 week max, that would sure be better for taxes. Does anyone know if this rumor is true?
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It depends on when your last date is on the official payroll. Once terminated, you will have as much as 60 days to get your signed waiver (severance papers) mailed back to the company. Once received by the company, it could take anywhere from 1 to 2 payroll periods to get your severance check in the mail. If you are able to delay sending in your signed papers and take advantage of the payroll processing period in order for the check to have a 2016 date in it, you will not pay 2015 income taxes on that amount. So calculate the time needed and that's all.
A question re Anonymous168219 October 5th notification date (last work date October 27 / supplement due day December 26th) - does the 7 day cooling-off period push the payment into 2016 if form submitted on December 24th (7 calendar days Dec 25th-31st?). Not sure what is counted as day 1 of the 7 days - the day they receive it (even if not a business day) or the day following. Thanks to anyone who knows / can answer this!
Thanks for all the good information. There was no separate instructions on the EOI input form to say the rules would differ from a non-EOI severance situation. With 21 day plus 60 + 7, it sounds entirely workable to get that check in 2016. Just hope I am one of the chosen :). It would be a nice extra for retirement, and hopefully save someone else from going who needs to stay longer.
You will get severance in 2015 not 16. In order for COP to take full advantage of the cost reduction, this expense has to be written off this year. They do not care about your tax liability. They do not care about you. Don't be fooled. Next years layoffs will be worse. There might not even be a severance. Oh and forget about VCIP for 2015. With stock prices hovering around 46 and all the other changes to pension and benefits, just be thankful you have a job.... If indeed you do.
The 60 day starts after the last day on the payroll. The last day on the payroll is end of month, up to 21 days. Layoff on the 5th, 5+21. EOI may or may not include the 60 day period. EOI may include the 7 day period, only. As I was laid off in April I have no idea what the EOI online form noted. But please do not wait the full 60 days! Failure to delivery for form within the noted period and the enhanced severance is not longer an option.
There will be a separate payment for unused vacation payable after your last payroll date. Example, if you are laid off the 5th but on the payroll until the 21st, your unused vacation pay will be issued after the 21st and it is not contingent upon severance.
Too bad we couldn't receive payments for unused sick days. Oh, right - we were never supposed to get sick or accrue sick leave. Lol
Does anyone know if accrued vacation hours are factored into this at all?
In April we didn't receive the release to sign until after the 21 day period was over. We then had 60 days to sign it. It could easily slide into 2016 if you want it to because it takes a couple of weeks to even get your payout after you return the release.
The General Release of Liability has a "Date of Delivery to Employee" line that will probably be filled out when you are terminated. I would think, from a normal reading of the release, that the clock starts then, and you have 60 days (plus 7 cool off days) before severance if you want it delayed. That won't get you to the end of the year unless you are let go sometime in the last week of October. I assume COP knows that and that is why the timing is set for earlier, so they can get the financial liability of Pensions and severances off the books and start clean for 2016. By the way, the top of the form also has a spot for HR to put the "Deadline for Receipt by the Company" on it. Good bet it will be 60 days from delivery of form (layoff date). I'm not HR so I don't know.
On the payroll until the end of the month up to 21 days. A good thing if you are laid off at the start of the month. A bad thing if you are laid off at the end of the month. And yes the math works unless the the online EOI process eliminated the 60 day period.
You're on the payroll for 21 days following notification of layoff. You then have 60 days to return the release of liability form to receive the enhanced severance deal. The company holds the form for a mandatory 7 day cooling-off period. That will get you to 2016 if the notification is 10/05/2015. Bank on it.
I have been thinking this also, It would be nice to get it next year...