How to Withhold Taxes for Severance

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How to Withhold Taxes for Severance – This is a place for the community to provide tips and advice on How to Withhold Taxes for Severance. This topic was created by Darlene Seta and the tips are provided by the community. The tips you add here can be your own or referred from another site. The best tips are then ranked at the top when up-voted by members of the community.

Tip 1 - How to Calculate a Severance Pay Deduction

Published: 9 years ago | Submitted by Charles Fewell | permalink

The Internal Revenue Service considers severance pay as supplemental income and, as such, taxes it according to the employee's tax rate. Employers pay severance pay based on the amount of time an ...

For further reading: http://smallbusiness.chron.com/calculate-severance-pay-deduction-16706.html ^[1]

Tip 2 - U.S. Tax Laws for Severance Pay

Published: 9 years ago | Submitted by Alan Millard | permalink

Federal law regards severance pay as a matter between you and your employer. A few states make severance pay mandatory to a limited number of employees, such as public workers, or during certain ...

For further reading: http://budgeting.thenest.com/us-tax-laws-severance-pay-26975.html ^[2]