If layoff notices go out in Nov, does that mean layoff date falls in 2025 or January of 2026? For the severance check, will there be a little tax reduction in 2026 due to higher standard deductions and inflation-adjusted tax brackets?
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Are you seriously asking about tax codes in the future? LOL talk to a tax lawyer. 🤣🤣
@a2 severance money is conditional on signing waiver not to sue Cisco. Most do unless you have lawyers in family and a strong case.
Every layoff has a slightly different package and they differ by country and tax jurisdiction.
In the past people have generally been given 60 days notice to allow them to find a place internally. After that they are terminated and then the severance is paid out as part of the last check.
So if someone is notified on November 13 they would be on regular payroll till Jan 13, and as part of their last check in January it would then contain all severance and COBRA payments. So the “lump sum” would be part of calendar year 26 taxes