I don't EVER want to hear another rich asshole complain about taxes

[PD Turk]

So, on 12-31-12 i was downsized out of a job after almost 13 years with the same company, 8 of those years as a department manager. I was informed I would receive 3 months worth of severance of my meager $36k salary, and that I would be paid every 2 weeks just like I was still working until the severance was paid out.

Well, first severance check was due today so I got up and checked the bank for the direct deposit and it was there, but, it was short. Considerably short. I called up payroll to ask WTF it was so short and was informed that severance pay was considered as "supplemental income" for tax purposes so it is taxed at a flat 25% rate by the IRS.

I mean.....REALLY? So this is what we've come to, the wealthy owners of this country are so averse to paying taxes that they have to kick the little guy at one of his lowest moments to take up their damn slack?

In light of all this , I have only two questions:

Ouestion one: What is the tax rate on golden parachutes?

Question two: Who owns this one? Under what administration/congress was this "let's kick the little guy while he's down" policy instituted?

In the meantime, I've taken on some drywall and paint work in order to "supplement" my income, so I better get back to rolling paint. Y'all have a great day, I'll check back in later, and thanks in advance for any answers you come up with.

[Lesmoderesstupides]

1. Unless you changed your W-2 the payroll SW does the auto 25% thing

1 week of each year you worked is pertty much standard now if you are lucky, many get nada.

Been there done that many times in life

Sucks huh?

It's the New Normal!

[unblock]

4. good point, perhaps the w-2 can still be changed?

[Lesmoderesstupides]

5. Maybe worth asking worst they can do is say no

[1KansasDem]

2. A year-end bonus is typically

handled in the same way.

[unblock]

3. it's not the tax rate, it's the withholding rate.

so eventually it comes out in the wash. when you start your next job you can adjust your w-2 to slow down your withholdings, or in any event it will come out in the wash by next april.

though of course it doesn't help your cash flow in the meanwhile....


on the plus side, as it's not regular labor income, they shouldn't be taking fica out. if they are, ask about that.


disclaimer: i have no legal or tax license of any sort.

[sinkingfeeling]

9. Yes, it's the mandated withholding rate.

[Mr. Mojo Risen]

6. Your unemployment benefits are going to be taxed too

Weeeeee!!

[datasuspect]

7. there's millions of people like you

your demographic is a profit center for national politicians.

[sadbear]

8. You had me at 'rich asshole'.

[EC]

10. Likely Reagan since that was about the time

the "supplemental income" benefits came to be, because of jobs being outsourced. He was the one that taxed our unemployment too.

[PD Turk]

11. Thanks

I thought it reeked of St Ronnie, just the kind of shit he'd pull ...