As we all wait for the ax to fall...I have spent a lot of time over the last week since the McLovin' email thinking about my time here at T and the corporate culture....reaching out to peers that have left over the last 10+ years, brushing up resume and LinkedIn, and figuring out where I may try to land. I am encouraged by the positive feedback and solid leads I have on the next gig. 25 years in one company, and the thought of starting over can be overwhelming. The long and short of it is, regardless of what you make and you tenure, this is a horrible company to work for, They could give a flaying flip about you, They don't value what you do now, or what you did in the past. Bad strategic vision have left them in the quandry they find themselves in now. Knee jerk solution is big headcount reduction. I will be relieved when the ax falls. I just can't/ won't leave that severance on the table. Sweeten it up with an enhanced voluntary offer like Verizon's and I'll hit the bricks faster than you could imagine>
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I was surplussed last year .For your severance payout, it's 25% withheld for supplemental tax, state tax (if applicable), as well as Social Security at 6.2% and Medicare at 1.45% taxes. So there will be a minimum of 32.65% taken out in taxes. They have up to 45 days to mail your severance check from the date you submit your waiver - which you can do your last day. It could come early but they can also take the full 45 days. Also they do not increase severance to cover those taxes.
I volunteered and will be separating next month.
I attended an HR session for surplused employees, because you're supposed to, and one gentleman was bemoaning being surplused after more than 45 years with the company. Man! I don't know whether I felt worse because he either needed the job that badly, or because he couldn't see (or have any hope) of a future outside this company.
I have been laid off twice before, other companies / industries during economic downturn...and I've always ended up better off than before. So if you are surplused, yes it s---s and it hurts and it's scary but if you're good at what you do, and can articulate to potential employers, you should be in good shape.
I believe what the poster was referring to was that you can expect to PAY 25% income taxes out of the 50% severance you'd receive. The severance is capped at 50%, that is clear. They are't throwing in another 25%.
I think you only 50%. Not sure where they got the extra 25%.. You will be taxed on the 50% you get, That's my understanding. Would be glad to get corrected.
I read the severance pay plan for management. I will be in the January 2019 cuts from the company. The severance plan will give me 50% of my salary to be paid to me within 45 days. What I see no reference to is the 25% for taxes that someone posted on this thread. That would be a nice little kick to the 50% but I just don't see it in writing.
From the last round, if you are retirement eligible you get no subsidization on medical, dental or vision. Non retirement eligible do get 6 months of subsidization. Full cost for a couple is about 1100 for bronze 1250 for silver per month. There is a link in the severance policy to check the cost.
I took a voluntary buyout last summer after 24 years of working for the company. The offer wasn't the best but I knew my skills were marketable. I found another job in 2 months, while still on severance pay.
We used to work for a great company but it's been mismanaged by greedy people who don't care about their employees. They told us we needed to retrain to stay employed and many "retrained" people still found themselves laid off.
Take a buyout if you are on the fence and have marketable skills. No one needs to work for such an ungrateful company.
" the bills for medical coverage @ $800 per month for husband/wife coverage."
Correct me if I'm wrong, but the company does pay for 6 months of health care coverage (except for your usually monthly contribution). Is this not correct?
@ymx. I hear you, Re: the c-appy high deductible medical plan , I am fortunate as I have been on my spouse’s plan for several years now, so no concerns there. Re: the severance, yes. I understand there will be a tax hit on that but again, I want my six months severance. I understand that T is not in a position to offer anything better based on their poor strategic vision and execution,
Don't hold your breath on sweetening a severance package. I think they already added a sweatener for you by protecting the interest rate on the lump sum. The last round of off payroll in Oct.'18 took @ 11k employees. I understand there will be much much more next time. They are pulling all the stops to reduce their bottom line to make investors happy. BTW, on the severance pay, it is half your base salary plus another 25% for taxes ; It will not go far especially once you start getting the bills for medical coverage @ $800 per month for husband/wife coverage.
Don't hold your breath on sweetening a severance package. I think they already added a sweater for you by protecting the interest rate on the lump sum. The last round of off payroll in Oct.'18 took @ 11k employees. I understand there will be much much more next time. They are pulling all the stops to reduce their bottom line to make investors happy. BTW, on the severance pay, it is half your base salary plus another 25% for taxes ; It will not go far especially once you start getting the bills for medical coverage @ $800 per month for husband/wife coverage.