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Hi Fishes,
I am currently working world's largest beer company. I have current CTC of 25 LPA and I am expecting hike of 10% at least within the company.
I got interviewed at Pepsi Co for Lead -2 position and have cleared all the rounds. How much can I expect, I have just asked 30% on current CTC.
Please do let me know as it will be very helpful. Do they provide relocation allowance, do i need to submit any documents for them. Also, do they offer any joining bonus?
Pepsico
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If you paid in too much, it will come out in the wash at tax time.
Severance will be taxed at your marginal tax rate, much like the bonus. What changes now it's how much your employer withheld. The 22% is not the actual tax rate, it's an available shortcut to compute withholdings. The employer can also use the more compex but more accurate "aggregate method". In any case if they withheld too much, you'll get your money back once you file your tax return.
Rising Star
Better not get pushed into the higher tax bracket and Venmo me the money
Bonuses are taxed at 37%. Not 22%
Rising Star
Yeah I know. OP is the one who seems to think that severance/bonus/salary is taxed differently.
They may have wrote your severence as a bonus, but they are both taxed at 22%. If you are unhappy with the disclosure, you need to speak with HR. Most likely someone was lazy and typed your severence as bonus. I cannot think of any tax benefits for the company. However it does look better on the financials as a bonus to employees vs. a severence line item.
Taxation is theft! “Oh you lost your job? Thats too bad. I’ll take 1/4” *rubs nipples * - The IRS probably
Good luck in your future endeavors.
Too bad thats not how most of our tax dollars are used and they are instead wasted on endless wars and pocketed by politician’s cronies in the forms of “social programs” that never see the people who need it most.