Is it paid every 2 weeks, 1 week, lump sum?
9 replies (most recent on top)
@af+1jvq768rf just Google the supplemental withholding rate. It's the same rate bonuses are withheld at for taxes.
Weakly. Very weakly!
Do not listen to @a4. This is 100% incorrect! Lump sum means 1 specific amount paid all at once unless you sue for some reason. The lump sum is to show appreciation for the number of years you gave to the company. The company does not care if you get another job immediately or not, you get to keep the whole amount (minus taxes of course).
Lump sum, right now it doesn’t matter, but if you get laid off near the end of the year, it may be best delay accepting a payout just so it pushes to the new tax year.
@ab- what do you mean by tax withhold at supplemental rate?
Lump sum, and tax withholding is at the supplemental rate.
When I was SIRP'd in '22 it was a lump sum.
Chat with a lawyer. Generally if you take lump sum it could be less than if you take regular payments...but you'd get it all at once.
Also, sometimes if you find a job quickly you have to pay back some of the lump sum. So it's not a straight easy answer
One lump sum right into your bank account if you have automatic deposit.