The FAQ says: "You will be paid through October 16, 2020, on the normal payroll cycles."
Is the final payroll check on Thursday, October 15, 2020?
What about Friday, October 16, 2020? Will we get paid for that day? On October 15? On October 31?
9 replies (most recent on top)
What a cluster of a package. Numbers are good but the handling of the final checks and payouts are amateurish. What a joke if a company.
Yes- type o should read applies to your 2020 income, yes amount for "taxes withheld" for the bonus will be higher as it always is however the point is that your severance income will will be added to your 2020 income rather than spread into 2021. If you would have made 200k in 2020 you now made 375k, you will need to be prepared if that addtional potion puts you in a higher bracket vs what was withheld. Ideally it would have been nice to have been able to spread it over 2020/2021.
"You may wish to consider your tax strategy as the lump will be withheld at higher limits and added to you 2019 income“
This is inaccurate. It’s 2020 salary, wages, tips, etc. Additionally, your tax bracket doesn’t change paycheck to paycheck. The only item that is taxed differently is your bonus and it’s at a more generous rate than salary. If your attorney and tax advisor told you this, fire them.
“You may wish to consider your tax strategy as the lump will be withheld at higher limits and added to you 2019 income“
This is inaccurate. It’s 2020 salary, wages, tips, etc. Additionally, your tax bracket doesn’t change paycheck to paycheck. The only item that is taxed differently is your bonus and it’s at a more generous rate than salary. If your attorney and tax advisor told you this, fire them.
The below post is 100% correct.
"if you read thru the very confusing packet of information we will not get the lump sum severance until AFTER we are terminated and send back the signed agreement which I believe we cannot send before 10/16 based on reading thru the mumbo jumbo legalese. Within these multiple confusing papers is one titled "Summary for Exiting Associates-INV". On the second page there is a bullet point on "Profit Sharing Plan and Employee Stock Ownership Plan". The very first sentence says, "Generally, you must have been employed with the company at fiscal year end (September 30) in order to receive a contribution for the year. So to me that means we should qualify for whatever everyone else at RJ gets. Hoping someone that is working with a lawyer can show them this and see if I am reading this correctly. If so we will see something in December. Again this is a big "if" RJ even gives anything out this year. Hope others can confirm how I am interpreting this"
if you read thru the very confusing packet of information we will not get the lump sum severance until AFTER we are terminated and send back the signed agreement which I believe we cannot send before 10/16 based on reading thru the mumbo jumbo legalese. Within these multiple confusing papers is one titled "Summary for Exiting Associates-INV". On the second page there is a bullet point on "Profit Sharing Plan and Employee Stock Ownership Plan". The very first sentence says, "Generally, you must have been employed with the company at fiscal year end (September 30) in order to receive a contribution for the year. So to me that means we should qualify for whatever everyone else at RJ gets. Hoping someone that is working with a lawyer can show them this and see if I am reading this correctly. If so we will see something in December. Again this is a big "if" RJ even gives anything out this year. Hope others can confirm how I am interpreting this.
I have called both the HR Business Partner Group and Payroll. No one can seem to answer this question: Are our 2 upcoming paychecks that we are set to be paid on 9/30 and 10/15 included in the lump sum figure? Or is the lump sum completely and entirely separate from our last two pay checks and we will be receiving this entire lump sum figure in its entirety in addition to our last two paychecks?
Ameriprise pays full years bonus and full years vacation remaining versus accrued vacation and partial bonus when laid off in the month of October and they treat you with dignity and allow time to transition work and use home office resources for 6 weeks along with a year of health benefits and job support. No surprise as a newer company they surpass RJ on all levels.
I ran the numbers and reconciled within 1k of the payout number. The number includes 2 weeks for every year of service, 80% of last years bonus and unused vacation days, the packet also references that vacation will be paid as part of the final payment, The 31st check will include through the 15th, the Nov lump payment is technically the last payment. I had my lawyer and accountant review, it is a very generous package. You may wish to consider your tax strategy as the lump will be withheld at higher limits and added to you 2019 income which will likely push tenured folks to a higher bracket so prepare accordingly.
In one of the sections it says you will be paid through October 16 and final paycheck will be October 31, I imagine that will also have vacation time paid out.