Friday, February 20, 2009

severance pay gripe

Right. Was woken up today by my friend Sadie. Due to this recession Sadie has lost her good paying job at an auto parts plant. Sadie worked this job for three years and got three years of severance pay, plus her vacation pay. Her check came in one lump sum. Here is the kicker. She has lost more than $2000 in taxes. In what land is that right?

I don't get it. She's been on EI since December, just getting enough from the government to pay her bills. Then she gets her severance and she looses more than half to taxes! There should be a law that states that the government will not tax severance pay. It seems cruel to do it. This was money she was counting on to get her through the next little bit until she found another job! This money would have paid for a lot and they took half of it.

Sometimes I really hate the government


  1. It is indeed cruel and so not fair. is there a way she can claim a harship to get out of paying for those taxes?

  2. I'm not sure really, i was wondering that myself...maybe she could claim it on her taxes or something. It would be a real bitch if she lost all of that with no option for a reimbursement.