So, I have been talking to my co-workers, and I can’t believe how many of them are unaware of the fact that the retention bonus and severance are taxed in the end. That large number that you saw inside your packet is BEFORE TAX. Yes, that packet is a bunch of smoke and mirrors to keep you working until the end. Please educate yourselves ladies and gents.
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Retention is taxed as a bonus there for is at a higher rate then hourly or regular payscale.
You are not a smart human, whoever thought that the #’s in the packet were net not gross, is in trouble in the real world!
The retention as taxed as a lump sum as it will still be considered income. Should be taxed regularly to your hourly rate.
Smoke and mirrors is being a little dramatic, but the paper with the breakdown of what we will get in the end does look a lot more attractive than what it really is. I know severance is taxed the same way as our hourly rate, but I honestly do not know how retention is taxed. Could someone explain it to me please? Thanks