Questions About Severance Package
Question about my severance
Can someone with more knowledge than me help me out here. I got laid off and was offered a severance package.
It says that my NET lump sum payment would be 30k. To me NET is after taxes. In reality my payment was 10k less so it seems like they gave me the GROSS number not the NET. Am I way off base here. I’m financially illiterate so anyone with knowledge of how these things work please help me understand!! It also appears it was taxed like a bonus and not like normal income. Thanks in advance
Here is the exact wording from my separation agreement:
Severance of 32 weeks of pay, which calculates to $ 41,484.80 , less standard payroll deductions and withholdings. This 32 weeks of severance pay is inclusive of your paid, Base Pay Continuation Period. As a result, the $ 41,484.80 will be reduced by the amount of pay equivalent to the number of paid days you receive during the Base Pay Continuation Period, less certain adjustments, standard payroll deductions and applicable withholdings. After this reduction related to the paid Base Pay Continuation Period, it is anticipated that your net lump sum severance payment will be equal to $ 30,076.48 .
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