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How IRS Taxes Severance Pay

Por: Forbes Business October 17, 2022

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Paper with Severance Pay on a tablegetty You may get severance pay when you quit your job, are laid off or fired. You also might get severance if you sue and settle. Whether or not your pay is labeled “severance,” and regardless of when it is paid, the IRS generally views severance like any other pay. That means it’s taxed as wages, so is subject to withholding and employment taxes. If your employer hands you a severance check as you walk... + full article



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