So, with all the taxes and additional costs with full medical, dental, and whatever else, how much of the severance is really left over to use as a safety net before a new job?
I get a feeling it's much less than many people expect it to be.
Also, I'm talking about the U.S., not sure how it works in other countries.
Varies greatly by country, I was UK based, left with equivalent of 8 months salary was on a legacy transitioned contract, standard UK contract much less.
The high tax rate on the withholding messes up your cash flow but the actual tax rate over the year is no higher than your normal rate.
Looks like you're the stupid one @1plw
@Tiw96Ck-1plw.. this payout is treated as a "Bonus" and is taxed as such. So not the same as 4 pay checks. Much less.
OMG it's so simple , severance in the US is a Max of 8 weeks salary. The same amount you would see as take home pay from 4 pay checks.
Are you people stupid ?
I believe the cap is up to 8 weeks. But after it's heavily taxed (bonus rate, I believe), it leaves you with peanuts.
Isn’t it just 2 weeks now in US? At least that’s what it was for a colleague that had been with the company for 3 years
Your probably right. Not very much. Employees get screwed by their employers due to the laws passed over the years.