In the past layoffs, did the severance package get paid as a lump sum or in monthly/bi-weekly installments, sort of like an extended paycheck? Lump sum in October vs. periodic payments to 2016 will make a substantial difference for Federal tax liability for most affected people.
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Doubt the company will want to delay booking salary expense into the next quarter. That just stretches out the pain to Wall Street.
Any one that received package successfully negotiate lump in 2016? What's the trick?
You should negotiate to have your GTFO package paid in January of 2016 instead of toward the end of 2015, unless you're getting a significant pay raise at your new job. Otherwise, all of that extra money is going to be taxed at a higher rate.
The entire lump sum becomes 2015 W-2 income and might push you into a higher Fed/State tax bracket, which periodic payments into 2016 would not do. Lump sum payment in January would be better than getting it very late in this tax year. Anybody who's been an employee > 2 years is potentially affected by this.
Why would the tax liability be any different at the end of the year? Isn't the difference simply the amount withheld, but the effective tax rate would remain the same?
It is a lump sum made at the next pay period after your official GTFO date. During the 60 day WARN period, you get your regular paycheck. If you leave before the 60 day notice, you still get your regular pay as if you had worked during the entire 60 days. In either case, your insurance coverage continues to the last day of the month in which you officially GTFO