Is there any way to receive severance payment in several installments instead of a big lump sum? This could make a huge difference financially, as it would be taxed less than it is.
One of my former coworkers nearly had a heart attack when he realized how much of the sum he expected to receive ended up being swallowed by taxes (granted, he should have researched more, but still.)
Just wondering in case I am next on the chopping block.
If you have a lot of PTO banked, that first check and the taxing of it may be seen, but at least it’s money coming in
When i was laid off my last “ employee” check included my PTO and 1 week severance since my last employed week was mid pay cycle (worked 40, 1week severance to equal 80). Next pay period i received 2 weeks severance. Last pay period i reviewed 1 week severance. So please be aware of where you are at the the pay cycle when your last day hits. And yes, the taxes on that initial check s---ed
Huh? Poster meant the bonus that is not a raise, plus severance, plus PTO.
Poster you better get out your package and READ it again. You get lump pay out of PTO not severance...
If I had to get RIF'd this was the best time for it. Got my lump sum 2018 raise in January even though I won't be here for the whole year. Got increased money in my paycheck since February with the tax law changes. Getting three regular paychecks in March for my pay cycle instead of only two. Gotta love those 3 paycheck months twice a year! I'm in better financial shape than others RIF'd in 2017. Count your blessings...to the bank!
Taxes are high especially with our state taxes. What a bummer.
They should not be taxed like supplemental pay.
It's paid every two weeks on the same schedule you are on currently-- matching the number of weeks you are eligible for.
As I understand it, the first severance check includes all of your unused PTO so if you have two weeks unpaid PTO or more, that check is likely to be less than separate checks for two weeks of pay.
I don't understand this post as severance comes every 2 weeks like your regular paychecks, not lump sum. However severance and PTO are taxed at 25% federal and whatever your state taxes are, so for me it was taxed nearly 40% with each payment. It is considered supplemental pay like your one time only checks.
The severance does not come in one lump sum.