Why Your Severance Pay May Not Be Fully Taxable

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TAX PLANNING, TAX SAVINGS

Why Your Severance Pay May Not Be Fully Taxable

By The BIDaWIZ Team on November 22nd, 2013 at 5:02 pm

There has been an ongoing issue in the Federal tax court system as to whether or not severances should be subject to payroll taxes. Ordinary income and state taxes will continue to apply to severance, but payroll taxes may not in the future. Find out why and how it impacts both employers and employees. .

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