- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Severance Payments
After a recent layoff, I have started receiving severance payments from my employer. The payments are weekly, the same gross amount as when I was employed. But these payments are being taxed at a higher rate. As far as I understand severance is only taxed differently if paid in a lump sum (due to tax year estimating). When I reach out to payroll, they only respond with “severance pay is taxed higher”.
I am in Georgia, the severance agreement states that “payments are to be made for 12 weeks equaling last recorded salary gross pay for a total of $****”.
Is there something I am missing? Or do I get the tax difference back when I file? Just doesn’t sound like they are applying the taxes correctly.
Topics:
August 7, 2023
8:54 AM