I understand severance may be taxed with the consideration that it is 6 months pay (or however many months depending on your situation). Do you know what percent of federal tax was withheld? Thanks!
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See if you have an option to defer your severance for sometime in 2024 if you are concerned about being in a higher tax bracket.
Zelensky needs your money. Pay up
Mine was about 35% Fed, 14% State (Cal). I believe Payroll calculates an assumed YTD compensation based upon what you have made already YTD, plus the Severance, to assume the tax bracket where you will fall.
Depends on tax laws at your work location for state and local taxes.
Depends on who you know. If you didn't kiss up to your manager, expect them to take out a lot more on your taxes.
Federal tax will be 22%, does not matter how many exemptions you claim on w4.
SS/Medicare will be 7.65%.
State tax depends on your state tax rate, mine was 5.4%
Local city tax if applicable, mine was 1%.
Total withheld from my severance check was 36%.
I would think your final tax bill will be based on your yearly income. Granted ATT may keep back too much, but they are complying with IRS tax laws. Not happy, try to get the worthless politician you voted for to fix the issue......
Severance is taxed at the supplemental rate. About 30%. More than likely, you'll get some back when you file next year.
How much tax comes out depends on your position and years at AT&T. The longer and higher up, the more taxes they take.
Probably best option for taxes would be to defer payout until next March.
All taxes and social security and whatever other stuff, added up to right about 29% for me.
" You’re gonna be surprised how little your lump sum severance is going to be..."
What a "lump sum" severance?
It's just severance.
Tax rate is clearly stated in the Severance Plan documentation on HROnestop. 30% plus any applicable state income tax.
Careful on lump sum pensions, though. Interest rates have increased and the 2024 rate takes effect on Dec 1. If you have a sizeable pension and you plan to take a lump sum, get off payroll before then.
If I could spread it out, I would not get unemployment. I don't think we can though. And 25% sounds about right, thank you!
Is there an option the get your severance as spread out over 6 months instead of a lump sum?
25%.