Legal Question in Employment Law in Florida
Severance pay
My company let me go yesterday. They decided to pay me a weeks pay for each year of employment. They are paying the lum sum on my net check, Fri. 2-15 How will this be taxed and is there anyway to avoid this lump charge? What percent of tax will be charged? Can I get around it. I am 60 and make 38000 per year up from 36500 last year. My firing has been planned for months I had no knowledge Locks were changed while I was still working and our small office of 3 plus 2 maint. workers all knew but said nothing.
1 Answer from Attorneys
Re: Severance pay
Let me get this straight . . . . . you have been fired and your employer wants to give you a severance check and you do not want the money? What am I missing here? If you want to avoid receiving the money just tell your employer that they can keep it or send it somewhere else (heck -- ask them to send it to me!).
The payment is treated as income to you. They will make a witholding as they have for all your salary checks. You cannot "get around" paying taxes on the income you receive. You are in a low tax bracket. Obviously, while a percentage will be taken for taxes, you will make a net recovery of money.
If you do not want it, give it away!
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