Posted on 07/05/2016 7:45:32 PM PDT by George from New England
Job terminated as of June 30. Final paycheck is for 6 weeks pay. Normal FITW bi-weekly at this salary is $0. Since 6 weeks are posted in 2 week timeframe the FITW is $289. Employer claims i.r.s. forces them to do this on severance pay. I think that's a lie. Do I have to wait until I file in April next year to get back this $289 theft of funds? Can payroll company be forced to disperse final check amount and withhold based on a larger than 2-week window?
Has any freeeper seen this or know better ? Thanks.
I got a five month severance check after an inglorious end to an 18 year career. As I recall, our wondering friends at IRS took almost half. I never got it back at tax time either.
And sorry to hear about your being gainfully unemployed. I hope you find something soon. In the booming Obama economy, it should be a piece of cake.
Sorry George.
25% is minimum withholding on bonus.
I’m sorry too - my advice is start wearing a dress.... or claim to be muslim. You should find a job quickly under those criteria
That my FRiend would be the supplemental withholding rate, which is usually in the neighborhood of 25%. All lump sum, non-hourly or salary compensation receives this withholding rate. So just imagine if every paycheck you received was a commission or bonus type pay....
The employer has the choice to do a flat 25% withholding (1a) or calculate withholding if this was a continued wage payment (1b), albeit a hefty one. See Publication 15, pages 18 and 19. Most employers don’t take the complicated route and use method 1a. They were NOT forced into how to do this.
Claim less withholding on future pay or unemployment income for amount over with held .
they are correct. Dont blame them, blame the government.
Depending on what your profession is, you may need to look at the job boards for the DFW area. The North Texas job market is booming and there are jobs to be had.
Yes the tax man gets it because they treat it is regular pay for the period and throw you into a higher tax bracket. You should be able to get it back when you files taxes. It is even worse if you get a bonus check. Special tax rules apply.
I think they do have to withhold but you can download Circular E from the IRS website (employers’ tax guide) - that’s what they have to follow
Sorry to hear the bad news. The company is correct. The IRS will take a portion as you permitted in your W-2. The only solution would be to change your W-2 prior to leaving the company to “EXEMPT”. Then they would not take any of the money upon departure. You would have to next April to resolve your yearly taxes with them.
However, it sounds like it is too late for you. Did you stash some funds away? Did you reduce your credit card bills, and reduce your tethered media accounts (netflix, cable, 4G, etc)?
It sounds like you are in need of a strong situational analysis. Go to the local social services office and sign up. The Obama administration has greatly expanded the benefits that you might be entitled to.
If you are a man of color, Muslim, illegal, with many children, non-white, with no money in your bank account, you should be able to get a survival level of support from the government. Take advantage of it.
Go Gault. I’m probably right behind you.
Sorry to hear about losing your job, but what in the hell gives you the crazy idea that it was EVER YOUR MONEY to begin with??
Quit griping, your Government has rigged FBI Investigations to pay for you know.
Seriously, the answer is yes, they can withhold that much.
Sorry to hear about your Job situation.
They have to take out FIT based on your W4 and the gross amount. Sorry about your job.
The irs does require it
Yeah you have to wait till April
Unemployment is also taxable come april
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