I was let go back in April. They said they were sending a severance check of $4700....what arrived was a check for about $2900. There was over a grand kept out in federal withholdings and about 400 for health insurance (even though I no longer work there). Does this sound like there's been a mistake -or- Is this standard operating procedure? I've never been fired from a college before / gotten severance. Any advice?
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008- Be careful about the insurance benefit coverage. Unless otherwise specified, Insurance benefits typically cease at the end of the month in which you left the company, not "the month after you leave". As such, the dollars withheld for insurance in the final check are for that month.
It sounds about right. They have no choice but to withhold taxes and FICA. The health care usually lags for a month so you can be covered for the month after you leave. Is the gross correct? that is what counts.
904: Thanks for the advice!
792: I'm not pursuing legal action so signing the sev. agreement was in my best interest
Severance is taxed at 25%for federal income tax, then you have social security, Medicare and state tax if applicable. Usually taxes are about 35-40% of the gross pay. You shouldn't have had insurance deducted unless you owed money prior to the end of your employment. You couldn't call HR Bemefits Dept at campus support.
first mistake: working for these clowns
second mistake: signing the sev agreement