Read somewhere that, two weeks for every year of service is capped at 35 weeks? Is this true and does unused vacation add to after this 35 weeks cap or is severance plus vacation capped at 35 weeks max.? Please respond if you know.
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Government will take about 37% from the lump payout.
My STI target was 12% and I was paid out below 10% when I was RIF'd. The HR guide says it is paid out at a lower than target amount if you have been separated from the company. It used to be target, but they lowered it to save $$.
Severance is capped at 35 weeks plus any unused vacation. Plus any unused personal time (at least in CA). Your severance is 35 weeks of pay including your target STI. However, you will still get your STI in February. So if your pay is $52,000 a year, and your STI target is 10% you get $52,000 + $5,200 = $57,200 / 52 (weeks) = $1100 * 35 = $38,500. At least I think that's what they told me. Don't forget the IRS is going to take 35-40%.
Not sure if the bonus is pay now, or next year
Accrued vacation is paid out and is seperate form the severance. Your lump sum will also include a prorated STI bonus if you qualify.