I’ve heard a few rumors so thought I might get it right from the horses mouth.
For those who are expecting the severance payout to be a lump sum, I would recommend lowering your expectations.
It will be paid out in installments starting 2/15.
Number of severance weeks awarded / 2 will be the number of installment payments to expect.
It will follow the normal pay periods of 2/15, 2/28, 3/15, 3/31 etc.
"Leaving in anger" is not actually a thing. Employment lawyers are, though. No one is going to get their severance payout cut off for saying things that hurt the CEO's feelings. Stop trying to scare people.
"So, read and follow the terms of your severance agreement closely. As an example, any form of bad behavior (intended to harm CSG) once terminated can result in the halt of any remaining payments. "
And how would they know who is posting "hostile" comments on this site? They would not. Are you ELT? This sounds like BS management scare tactics. You think people who get laid off are going to go off with a smile and good memories of working for CSG??
"If you leave in anger, then you will be viewed as hostile."
We just need to let go of the past, our history at Citrix, and move on...
It's very likely that HR was told to shift from the prior policy of lump sum payments of severance to the deferred bi-monthly approach due to concerns that ex-employees have become hostile towards the new owners.
Just look at the commentary posted on this site by long-time employees who are angry.
So, read and follow the terms of your severance agreement closely. As an example, any form of bad behavior (intended to harm CSG) once terminated can result in the halt of any remaining payments. Therefore, the severance payments you receive are based upon agreement compliance. If you leave in anger, then you will be viewed as hostile.
I just assumed it was being paid out in installments rather than lump sum due to cash flow issues.
"That just means the company would withhold at that rate. It has nothing to do with your ultimate tax bill when you file your return."
Of course, that's understood. I was responding to clarify a post with misinformation. Severance is taxed differently than your regular earnings pay.
"IRS lists severance payments at 22% flat rate"
That just means the company would withhold at that rate. It has nothing to do with your ultimate tax bill when you file your return.
Also, it's true that HSA and 401k deductions (and matching) stop once you're terminated
It's true, I checked and IRS lists severance payments at 22% flat rate (regardless of your prior tax rate before being terminated). That said, the reasoning for this deferred payment approach is perhaps the bigger question. What's CSG's cash flow status?
I only know what I've read on Google, but I think there are certain tax-related things that you can do with earned income that you can't do with "supplemental income", like put it in an HSA or tax-deferred retirement account. Getting it paid out in installments does muddy the waters a bit. If you have a substantial severance payout coming to you, you probably need to talk to an accountant. I'll be calling mine this week.
"Severance pay is not taxed any differently then normal income, no clue where you got that information. " The confusion could be that, if the severance is paid as a lump sum, the company might withhold a higher amount. That doesn't change what you will eventually owe on your tax return. Given that CSG is paying it out like a regular paycheck, my guess is that they'll continue to tax it the way your normal paycheck is taxes.
You will lose a chunk of severance to income taxes and payroll taxes just like any other paycheck. i.e. it's not as much as it seems. Depending on your state (if U.S.), you may be able to collect unemployment even though you're getting severance.
the severance agreement did state it would be paid out in installments but did not specify how many. Any insight into how RSUs will be paid out?
Severance pay is not taxed any differently then normal income, no clue where you got that information. The only reason some employers would take out more taxes in a lump sum payment is to help with the tax burden of receiving more income from getting another job.
For example you get $50,000 in severance. Tax on first $50,000 would be $5000. You get a new job at $50,000 and they also take $5000 taxes. However since you made $100,000 your owed taxes are $15,000 due to part of your income being in a higher tax bracket, not the $10,000 which was paid. Now you owe $5000 when tax season rolls around.
FYI, employees that were terminated with severance previously in the U.S. were paid a lump sum. Here's the reason why, "From a tax perspective, the IRS views traditional severance payments as 'supplemental wages' because they are not a payment for services." Meaning, they're typically taxed at a higher rate because they're not earned.
So, it's very unusual that an employer would opt to pay in bi-monthly installments. The tax implications for both the employer and the employee are unclear in U.S. tax law.
ID: @1itl+1kWd4rVT
I pointed that out to her and said we’re not psychic or mind readers.
It took me asking to learn how severance is being paid, when it is being paid, that I met the requirements for severance, and that my equipment was successfully returned ansb checked in.
This sh-t is wild. I can’t wrap my brain around the utter overall fail since 1/10.
Would it ki-l them to put a mailing list together for this stuff? Or a mini website, protected with a login?
ID: @iue+1kWd4rVT
As I told the person in HR today, we aren’t mind readers or psychic. Hiding isn’t the best solution .
You know it’s bad when I get better info from this site than from CSG’s HR department.
I’m not sure I follow the question of how. It will follow the same pay schedule we used to follow. 2/15 is the first payment / installment. You’ll get paid each pay period until your weeks run out. Direct deposit.
Any insight on how owed commission payments will be paid out?