I just got a deposit into my account which I can only assume is my vacation that I was paid out on since details are not available yet on my banking app. When I checked last, I should have been paid out for 180 hours, however, doing the math it seems short by about $700. Does anyone know if your vacation payout gets taxed at a higher rate as well (like commission) instead of how it normally would have been taxed on an hourly check?
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How long does it take to receive vacation payout once you are separated from the company ?
35% tax rate means your total yearly gross income to be 400k. Seriously? How does 50K gross amount equal your total income of 400k. These people are shady as hell. They are withholding your money and I don't think you will get it back from Uncle Sam when you file for your tax returns.
I saw the checks that were paid out in EISP’s. The $50k checks were $30k after all the taxes. That shows about 35% federal tax rate.
You thats complete BS. They scam you 12 hours of vacation hours because they didn't want to pay you. You should try to call again. If I were you, go to workhistory.verizon.com and find out how much they exactly pay you and how much they actually tax you. Because this sounds extremely shady. I wouldn't let it go until you get back every dollar back. They can be very shady.
"Speaking of 401k above, would anyone here know how long I have to move that or can I essentially just leave it until I can roll it over to my new company? Spoke to someone at new job and was told I can do that in January."
Providing is it over $5k, you can leave it there for as long as you like (well, until you need to start taking distributions at 70.5) You can also roll it over to a new employer plan (if allowed) or to an IRA at any time
Update:
So I called a payroll/tax number that was in the severance FAQ packet. Apparently, even though the screen in About You said I had 180 hours available, I had only accrued 164 through my May, when I was notified of the layoff. With that, I didn’t get the 12 hours I would have accrued in June even though I was on the payroll until 6/15. I tried calling the local HR contact on both Thursday and Friday to ask about 401k stuff and figured I’d check in on this, left voicemails with no return call back.
All this being said, I did the math (164 hours divided by 80, a normal pay period) and figured I should have received 2.05 of what would have been a normal check. After that, I still show that it would be a little less than $400 short. Maybe the higher check did put me in a higher bracket as one person said, I suppose I can call that payroll number on Monday again.
Speaking of 401k above, would anyone here know how long I have to move that or can I essentially just leave it until I can roll it over to my new company? Spoke to someone at new job and was told I can do that in January.
They probably screwed you on the number of vacation hours they owed you.If I were you check with HR, if they dip vacation hours on what they owe you consider filing for a lawsuit because they are violating your severance contract that you electronically signed. Bring the lawyers after the HR people.
If you got a lot of extra pay for the period, it is taxed a paycheck rate if you earned that much all year.
So, as said below, it will all take care of itself when you file.
Also make sure the paycheck is correct.
Good luck
"Wait till you get the severance check. That is taxed at about 50%." Well, the fed rate (supplementary) is now ~ 23%, so to get to 50 you would need huge state and local taxes.
You may be able to get some it back when you file your tax return for this year. You may be able to have a lower effective tax rate when you take your deductions, etc.
Wait till you get the severance check. That is taxed at about 50%.
Severance pay wouldn’t be taxed at the usual rate that commission is/was?
Taxes would be calculated on the gross amount and where it falls into on the fed/state tax rates. So a lump sum could put you into a higher tax rate than if it was just paid out pay period by pay period. Wait til you see what they tax the lump sum severance pay at.