#tax

1. Will the severance be paid as a lump sum, or do we have the option to receive it as staggered/salary continuation payments?

2. If paid as a lump sum, what tax withholding rate will be applied?

Thank you for your help.

The Plainfield City Council has advanced a $119.7 million municipal budget that includes a 5.4% tax increase. This spending plan also anticipates employee layoffs to address a structural deficit. City officials reduced the initial tax hike projection through spending cuts and new revenue sources. Rising health insurance costs and a decline in tax collections are significant factors contributing to the budget increase. A public hearing and final vote on the budget are scheduled for August 10.

Plainfield, New Jersey

https://www.mycentraljersey.com/story/news/local/union-county/2026/07/15/plainfield-budget-tax-increase-layoffs-2026/90914389007/

Jersey City's Mayor will formally introduce the 2026 municipal budget on Wednesday, following weeks of public hearings and the recent layoff of 31 provisional employees. The proposed budget aims to address a significant structural deficit by increasing municipal taxes by 15.5% and implementing over $58 million in spending reductions. This plan also relies on approximately $120 million in state assistance and covers $109 million in previously deferred obligations. Tensions are high as several City Council members have accused the administration of withholding financial information necessary to evaluate the proposed tax hike. The administration maintains the budget reflects extensive cost-cutting measures and fiscal responsibility.

Jersey City, NJ

https://www.tapinto.net/towns/jersey-city/sections/government/articles/this-week-long-awaited-jersey-city-budget-to-be-formally-introduced-on-wednesday

Boynton Beach's City Manager issued conflicting statements regarding potential job losses. He warned commissioners of mass layoffs if a property tax cut measure passes statewide. However, he later assured municipal workers that his administration would strive to protect their employment. The proposed tax changes could cost the city millions, impacting services like libraries and parks. To mitigate these losses, the city is exploring selling its fire and water departments to the county.

Boynton Beach, Florida

https://www.bocaratontribune.com/bocaratonnews/2026/07/boynton-city-manager-vows-job-protections-after-mass-layoffs-warning/

Are there tax implications by choosing one over the other? Does that affect how you can apply for unemployment? Can’t understand why someone wouldn’t just want to get the entire severance amount in one large deposit. Thanks.

1) Taxes taken out prior to funding the Trump Account (like a Roth IRA).

2) Taxed at regular income rates upon eligible withdrawal by the recipient.

Jersey City Mayor James Solomon lowered a proposed property tax increase. The hike is now 15%, down from an initial 20%. Solomon warns that no increase would cause mass city layoffs. The city faces a $255 million budget deficit. City Council members will vote on the revised proposal soon.

Jersey City, New Jersey

https://www.cbsnews.com/newyork/news/jersey-city-property-tax-increase-james-solomon/

Hey! I’m an RN in UM and initially I was going to take the VSP and just get the he-l out of there with all the crazy stuff that’s been happening the last few years. It’s not the company I initially signed up for. Then I started reading about VSP’s and the different tax issues and wondered if they would even pay us that amount, worrying about acceptance etc. So I backed out and declined it. today’s email definitely came out of left field and now I’m thinking I should just take the damn VSP. The clock is ticking and I’m on the fence. My concerns are that if you don’t take the VSP and are one of the employees that are left behind the workload is going to be nuts – with all the crazy new changes and lack of staff it’s gonna be worse than it’s ever been.Anyone else going back and forth on this at the midnight hour? Thanks for listening and good luck to all of you! 💗

It is my understanding that all severance pay will be taxed similarly to annual bonuses (around 22% federal + state/ss/medicare, totaling somewhere around 35-45% in NY). Are there circumstances where employees can opt to reduce the amount of taxes taken up front? Can anyone speak to this? Any HR reps in here?

Reporter Jessica Holdman discussed South Carolina business news. A new magnet factory is planned for the Upstate region. However, some layoffs are also expected in the Upstate this summer. New tax breaks will benefit companies converting landfill methane to energy. Additionally, new taxes will be imposed on vape products.

Columbia, South Carolina

https://www.southcarolinapublicradio.org/show/south-carolina-business-review/2026-06-08/new-jobs-new-tax-laws-and-layoffs-happening-in-sc?_amp=true

Check these out on your own. If you think it is worth staying because of a massive payout, think again.

---> Expect ~40% to disappear instantly via "sell-to-cover" on the day the RSUs vest.

----> Anticipate an additional tax bill of roughly $20 to $33 for every $1,000 of gross RSUs vested.

Choose your future wisely. Go look this crud up yourself.

Posting because people say "kick back and let everything just increase with RSUs and ESPP". RESEARCH THESE YOURSELF.

Bullet points...

Under Cisco’s standard severance agreements, Cisco typically accelerates the vesting of RSUs that would have vested through a specific forward date (often the next major vesting milestone or up to a few months out).

The True Tax Cost: 25% to 50%+ (Based on your total annual income)
When these accelerated RSUs vest on your termination date, they are treated exactly like a cash bonus (supplemental ordinary income). You are taxed on the Fair Market Value (FMV) of the stock on the day it vests.

Because the federal government mandates a flat 22% withholding for RSUs, you will likely owe extra tax at April filing time if your total annual income puts you in the 24%, 32%, 35%, or 37% federal tax brackets.

Employee Stock Purchase Plan (ESPP)

Option A: Disqualifying Disposition (Held 2 years from offer start AND > 1 year from purchase date)

If you have held the shares past both milestones:

Ordinary Income Tax Rate (12% to 37%): You pay ordinary income tax only on the lesser of: the actual profit, or the 15% discount based on the stock price at the start of the offering period.

Long-Term Capital Gains Rate (0%, 15%, or 20%): All remaining profit is taxed at the much lower long-term capital gains rate. For most tech professionals, this rate is 15%.

I was wondering if I'm one of the few XOM long career of 33 years stock holders who never traded or sold their stock mainly for NUA reasons. Invested only in XOM, S&P 500, and extended markets index. With the 170 dollar stock price I finally gave in and sold most of my XOM stock. I did the NUA and flipped 1.7 million into a Fidelity concentrated stock limited partnership for diversification purposes. Should give me close to the same returns as the S&P 500 without paying most of the taxes on XOM stock. I just paid taxes on the XOM stock with a very low cost basis, as low as 14 dollars a share.

Watertown City Council adopted its new budget on Thursday. The approved spending plan includes an 8 percent property tax increase. This budget will result in three employee layoffs. Affected positions are a police records clerk, a library clerk, and a code enforcement officer. Ten other positions were eliminated through attrition or vacancy.

Watertown, New York

https://www.wwnytv.com/2026/05/21/watertown-adopts-budget-with-tax-increase-layoffs/

Because this state is driving young adults out with zero affordability. Boston rent is off the charts, it’s unsustainable here.
The governor has not met a tax she didn’t like we are quite literally being squeezed and taxed to death here.
So don’t worry you won’t be laid off you’ll just be drained of all your money here. The only reason Fidelity still has HQ here is because of her massive real estate holdings. Even billionaires don’t like to lose money.
If things don’t turn around fiscally here we all may be forced between Texas and keeping our jobs or taxes and bleeding money to stay afloat. And I’ve got fairly deep seven figures invested and I’m worried!

Remember to double check/adjust your taxes if the severance package you received will push you beyond what you would have earned this year, or you will run the chance of having a bigger than expected liability at tax time next year.

Ysleta Independent School District faces a significant budget deficit. Superintendent Xavier De La Torre is considering future layoffs for 2027. This possibility stems from declining student enrollment and state funding losses. The district hopes a November tax ratification election will boost revenue. YISD previously offered separation incentives, with 160 teachers accepting.

El Paso, Texas

https://elpasomatters.org/2026/04/30/ysleta-yisd-vatre-tax-ratification-election-layoffs-enrollment-teacher-attrition/

Companies like BNY and their consulting sidekicks have perfected the art of “economic development,” which mostly means convincing state and local governments that a few hundred cubicles and a ribbon‑cutting justify millions in tax incentives. McKinsey brings the playbook, BNY brings the headcount projections, and suddenly the state is handing out credits like party favors to “stimulate regional growth.”

Once the incentives are locked in, the hiring machine kicks in. States love when companies hire local graduates, and companies love it even more because those hires help them unlock annual tax credits tied to job‑creation commitments. New grads from state schools are especially attractive: they’re local, they’re eligible for incentive programs, and—let’s be honest—they’re cheaper than experienced workers. Salaries vary, but the pattern is predictable: new grads cost less, and incentive‑eligible hires cost even less to the company once the credits hit.

Who negotiates all this? At BNY, it’s typically a mix of Corporate Real Estate, Government Affairs, and Tax/Finance, working quietly behind the scenes to secure incentives without ever mentioning them to the employees whose jobs justify the credits.

And how do new grads help? Simple: every qualifying hire checks a box on the state’s incentive scorecard. The state gets “job creation.” BNY gets tax credits. And the new grads get… well, a selfie with Fabs and welcome to the Bounce House - North Campus.

Forvis Mazars reduced its United States workforce. This adjustment impacts about 250 employees. Audit, tax, and consulting roles saw reductions. The company explained that attrition rates were lower than anticipated. Other public accounting firms have reported similar low attrition trends.

https://www.goingconcern.com/layoff-watch-26-forvis-mazars-cuts-3-of-the-workforce-in-unusual-post-busy-season-culling/

If you were getting a sum of 27k severance pre tax, how much would that be after taxes are taken out? Is it like 19k?

While the media fawns over Michael Dell hitting the $1B mark in "donations" to UT Austin, let’s look at the predatory math behind the headlines. This isn’t a gift to the public; it’s a masterclass in how billionaires use the Trump-era tax code to privatize our social policy.
Dell isn't donating "hard-earned cash." He’s offloading highly appreciated stock to his own private foundation to wipe out his tax liability. Every dollar he "saves" in taxes is a dollar stolen from the public treasury—money that should have funded basic community clinics and rural hospitals. Instead, it’s being funneled into high-tech "AI medical hubs" that serve as high-interest monuments to his corporate interests.
The "20-year promise" of his child investment accounts is even more insulting. He’s promising a few thousand dollars for a child in 2045, paid for by the massive tax breaks he gets today. Meanwhile, those same parents are drowning in healthcare costs. Family premiums have jumped nearly 50% in a decade, and high-tech centers like Dell’s only drive those costs higher by forcing an "innovation arms race" that hospitals pay for by hiking your rates.
We are literally subsidizing billionaire legacies with our own medical debt. This is the endgame of extreme neoliberalism: a world where the 0.1% decides who gets to survive based on which social problems look best on a building. We don’t need more billionaire "favors"; we need a tax system that doesn't treat the middle class like a piggy bank for the elite.

Lots of foreigners (Americans, Indians, Malaysians) under the guise of “specialty skills” Canadians can’t apparently perform in their customs letter. All lies! Folks forced to signing these bogus letters to allow these foreigners through and steal OUR jobs.

It’s not that Canadians can’t perform these jobs, but that the company doesn’t want to hire or have laid off Canadians that used to do the same job.

Companies like Imoerial should be taxed more. They’ve taken jobs from tax paying Canadians.

If you paid even a penny in federal income tax last year, you paid more than:

Tesla
Southwest
Disney
Live Nation
HP
United
PayPal
CVS Health
Palantir
Citigroup
PG&E
3M

Sam Altman recently formalized these ideas in an April 2026 policy blueprint titled "Industrial Policy for the Intelligence Age." Here are the primary examples of how he proposes AI should be taxed.

Therefore Oracle Employee should get their free Salaries from the Government soon.

Now trading nearly 80% down from ATH… it all but guarantees enough of a reduction in estate tax that TK would retain a majority of voting control.

Could suppressing growth be intentional to lessen estate tax such that majority voting control is retained by swoosh LLC?

If you get laid off and have accumulated unused PTO, when they give you a check for the unused PTO, are those funds considered taxable income? If so, wouldn't those funds be double taxed?

What wrong with ESPP?! I got the email that shares were purchased at 108$ each for 10800$ worth but I'm only getting 85 shares instead of 100! WTF! Is it taxes?! If I sell now I basically just get back my money (actually 40$ loss).

Random question: If I leave and am paid out for a few weeks of vacation, do I pay social security taxes on that or only income tax?

I’m trying to estimate what my payout would be.

Severance will be taxed as supplemental income at 30%!!!! Plan accordingly.

https://youtube.com/shorts/umJyw6g9R1g?is=l2eEP_CMCFZvKHMI

The Madison K-12 School District Board introduced its annual budget. This budget proposes an annual tax increase for homeowners. Interim Superintendent Bruce Watson announced staff reductions are required. Fewer than ten positions will be eliminated to balance the budget. Rising health care costs significantly contribute to the district's financial difficulties.

https://www.newjerseyhills.com/madison_eagle/news/madison-school-board-proposes-tax-increase-as-layoffs-loom/article_e8ab830f-2478-43dd-b807-7c81eb3fb682.html

Auburn city officials are considering layoffs and tax increases. These measures aim to close a significant budget gap. Rising costs and slow revenue growth strain city finances. Leaders must make difficult decisions to maintain essential services. Discussions continue to balance the budget and minimize impact.

https://www.fingerlakes1.com/2026/03/25/auburn-faces-potential-layoffs-and-tax-increases-to-balance-budget/

Given that RSUs are W2 income & taxed as such, it is very possible that an RSU could end up costing money (lowering one's net income): when It is taxed when the stock is high (at vesting) and then later value of the stock could be so low that it is less than the taxes paid originally.
And when selling it, the losses can be offset against W2 income with at most $3K/year.
Moral of the story: If the stock is high(ish) on the RSU vesting date: Sell all of it right away.
(I guess one could also opt for stock options instead of RSUs)
Disclaimer: IANAL/IANATP
Also: I know this is strictly not on topic

Starbucks just announced a second corporate office in Nashville, Microsoft threatening to move to Vancouver, BC, Amazon expanding it campuses outside of Washington State.

How much longer before TMO moves corporate to OP or Frisco to get away from the endless tax nightmare in Washington State?

PwC is laying off approximately 1,500 employees from its US workforce. This represents about 2% of its total US staff. The firm attributes these reductions to historically low employee attrition rates. Layoffs primarily affect the audit and tax divisions. PwC is also slowing new hiring and internship offers.

https://www.aol.com/big-four-firm-pwc-cutting-140950077.html

Has anyone heard about payroll calculating your OT that you can deduct for the no tax on OT wrong. Hearing rumblings that they didn't include any call outs because of the E11,E21, etc codes used on your timesheet. Are they going to be re-issuing W2's ?

While I understand the rationale from a Corporate Accounting perspective, as am Employee, these really suk. The price always goes down when they vest, so I end up earning less. My whole income stream (salary) it tied to this place, I do not need more exposure to an organization I have absolutely no say nor control in. Just give us ca$h, please. Also overcomplicates my Tax Filing. Ca$h is way easier. Please make RSUs go away.

Consequences of AI -

AI has (some) innovations, but.

AI will replace (most, not all) computer dependent jobs (that can be) in the future, (easily) in the Millions over time; through automation efficiencies.

AI will take away Tax revenues (from those employees that were replaced) who contribute to consumer spending which will (not if) have a very Negative impact on the U.S. economy.

AI will create (some) high paying jobs, but unless Taxes are Increased on Corporations; and the wealthy; there will (not if) be a Major shortfall in Tax revenue.

The U.S. National debt is (currently) $38.7 Trillion (and rising) per usdebtclock, with $990.0 Billion a year in Interest paid by U.S. taxpayers to outside Investors (U.S. based, Japan; China; etc.) that finance it over time.

Wars are (Always) costly over time (but sometimes necessary to defend U.S. National security), and the U.S. National debt will spike because of it.

These are the facts.

What is included in W2 Box 1?

Are the vested securities included in here? Is there anything else like employer portion of health plan?

Did you also see $300 wellness spending account showed up as taxable benefit on your pay slip even though you haven't made claim for 2026?

As a matter of principle this could cause inaccurate personal tax reporting. Just the sheer of incompetence. Opened a ticket and still waiting.

Let's see if another gong show happening on April 1 with HR system transformation.