Timing of 2016 severance payouts

COP management further proved the utter disregard for staff by timing layoffs to force severance payouts in the 2016 taxable year.

Yet managers/execs who take "retirement" are allowed to negotiate 2017 payouts so they don't piss away cash to the Feds?

Not a tax advisor, but I believe the forced 2016 payouts will also allow COP to max 2016 corporate write-offs -- helps offset a dismal year and something they couldn't do with Nov-15 severances in the case of those who delayed acceptance for the full 60 days.

Again, SPIRIT values are BS and show an utter disregard for the "P." COP is a travesty to its employees and the market. Maybe a sale can helps us recoup cash lost due to designed timing.

Looking forward to moving on from a poorly run company with a hell of a severance. Just wish I didn't have to hand a chunk to the govt when poor timing seems calculated.

Comment! It's anonymous!

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In Canada you can defer a portion to 2017. You need to call or email HR and ask for a revised sign off documents.

if you were let go it's too late to max out your 401K. 401k deductions aren't deducted from severance only regular pay, and there's a max percentage of that you can deduct. You can, however, max out your IRA.

@2myd, I think you better double check your paperwork. I believe it is 60 days to sign the waiver, not 90. I was notified Oct. 5, 2015. It was only just possible to get my severance payout in 2016. My 7 day waiting period ended Dec. 31. The next business day for check issuance was Jan. 4. Unless they have changed the 60 day waiting period, time for all those let go in Sept. runs out about Dec. 15.

Actually, between the 3 weeks you remain on payroll, the 90 day period you have before signing the "I will not sue" agreement and the seven day waiting period you should receive your payment in early January unless you sign the agreement as soon as you receive it. Note, however, that until you sign you don't get any supplementary benefits.

Thank you

WHAMMY!!!

I can't believe you think a company would offer tax optimized severance. You are both clueless and entitled.

Sounds like someone got whammied. Can someone please give a brother a whammy?

Figured as much, but didn't know the detail. Informative...thx

Bottom line, it costs the company more if they defer payouts till 2017. They will have to pay tax on the severance benefits (company portion of social security) in that case, whereas if they pay out in 2016, 90% or more of the recipients will have already exceeded the amount of wages subject to social security. So company more concerned with their tax bill than that of the employee.

Max out your 401k and IRA this year

Your comments are spot on. SPIRIT values my a--!

You mean your just figuring out they are a business. And a poorly run one. And they don't care about employees. And it's all about the mighty dollar. And top Managment only care about their a--.

Thread regarding ConocoPhillips layoffs

Timing of 2016 severance payouts

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