As we all are aware, many of us come to this site for information from our fellow coworkers or others to navigate a layoff or just to vent about the situation at 2U. Which is fine , however, many post information that is just not true or accurate. So please before you post, fact check and make sure that what you are saying is true.
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I think we're confusing tax rate and withholding rate. A bonus or severance isn't taxed higher in the end, but it is withheld at a higher rate by law, not by 2U. I was laid off almost a year ago and my severance was withheld at double what my pay had been. The extra withholding will show up as a tax refund. It makes more sense if someone gets a new job quickly and the severance ends up being extra as it will increase their income. If they don't then the extra withholding hurts when you're facing the unknown void of unemployment.
It is standard practice to treat severance payments as supplemental wages at a 22% federal withholding rate. This is not a 2U specific thing. It is treated that way because the severance payments are not regular income because it's not being paid in exchange for working hours.
This is crazy that our severance is being taxed as a bonus! It's bad enough that y'all let go an entire section of the company before Christmas but now you want to make it even worse?! Over $700 in taxes for someone making the bottom of the pyramid pay at this company is crazy. I hope the executive team has the time they deserve.
Looks like “leadership” is sniffing around this board. Writing is on the wall y’all
I agree. Let’s wait for the the Feds figure out whether 2U and its executives broke the law. Hopefully they’ve got some good lawyers
Does that include the 43-page Transparency and Outcomes report? https://twou-production.nyc3.digitaloceanspaces.com/media/documents/Final_2U_2023_Transparency_and_Outcomes_Report.pdf
How about reminisces?
https://www.forbes.com/sites/antoinegara/2018/09/25/mbas-in-pjs-inside-2u-the-47-billion-startup-that-brings-top-schools-to-your-laptop/
While companies don’t have to treat severance pay as supplemental if it’s not paid in a lump sum, “2U treats severance pay as supplemental income and its taxes are calculated using the federal and state supplemental tax tables.”
Is Severance Pay Taxed at a Higher Rate?
Social Security and Medicare are taxed at the same levels for severance pay as they are for regular pay. The federal income tax rate may be higher, however, depending on the amount of the payment and whether it pushes you into a marginal higher tax bracket. A severance payment might be taxed at a higher rate if it's made in a lump sum because it would likely be larger than the normal amount you receive per paycheck. https://www.investopedia.com/
Severance is taxed (federal) at a higher rate, depending on your tax bracket - that was accurate info. It’s treated as supplemental income, like a bonus would be. Better to prepare ppl who were laid off so they’re not as shocked when they see the net pay is less than expected!
No, you can not control press releases! But you can control what you post on this site. This is referring to info such as the your severance pay will be taxed at a higher rate, not true. Or that 2U violated to WARN act, not true.
Does that include "interviews" with potential students?
"We have a (insert cherry picked statistic) completion rate!"
"Yeah, but what about graduation rate or proportion of people who find jobs after the program?"
"Didn't you hear me?! We have a (insert cherry picked statistic) completion rate!"
Does that include 2U press releases?