After getting laid off at a global agency, I looked through my severance agreement and signed, only to get paid about half that amount. I expected taxes and fees to be extracted from the sum total, but half seems like a lot.

Is this typical? This is my first time being laid off with severance. I’m realizing maybe I should have consulted legal assistance with it before signing.

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Next time get a EIN through the IRS (takes 30 minutes) and ask your agency if they’d be willing to give you your severance as a independent contractor – full amount.

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IIRC severance, like bonuses, are taxed at the highest rate

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Same. The taxes were brutal.

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When you get paid a lump sum, the taxes are taken out as if you made that amount every pay period for a year. Since you didn’t, you’ll get back the extra amount when you file your tax return.

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Yes. Also applies to any bonus you get, for example an 10,000 sign-on will most likely be 5,500 for you

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