Take the Severance or Not???

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7 months of pay?

What, have you been there 14 years? Get a clue Mr/Ms Accounting professional....the severence is paid out as a bonus and taxed at 40%, not as monthly payroll. If your severence is based on 6 years at $80,000 a year, you are paid at 20 weeks minimum. Divide $80K by 52 weeks and multiply by 20. This equates to 20 weeks X $1,538.46 per week or $30,769.23. (NPC does not divide your salary by 12 months, they divide annual salary by 52 weeks. Do the math and you will figure out why...you get LESS!) If you divide 80,000 by 12 months ($6,666.66 mo) x 5 months (20 weeks), that equals $33,333.33. Divide by 52 weeks and multiply by 20 = $30,769.23, which is $2,564.10 less than they if they calculated monthly vs. weekly.
NOW..............
Multiply $30,769.23 x 40% and your check will be $18,461.54. How in the world can you make a statement that you can live on this for 7 months? $18,461.54 divided by 7 months is
$2,637.36 a month. Most of the home mortgages are between $1,500-$2,500, not considering utilities, insurance, loans, tuition, medical bills, etc, etc, etc.
It gives you enough to live for 60 days only to then lose your mortgage, car, loans, and file bankruptcy. Hello?
 






Anonymous said:
7 months of pay?

What, have you been there 14 years? Get a clue Mr/Ms Accounting professional....the severence is paid out as a bonus and taxed at 40%, not as monthly payroll. If your severence is based on 6 years at $80,000 a year, you are paid at 20 weeks minimum. Divide $80K by 52 weeks and multiply by 20. This equates to 20 weeks X $1,538.46 per week or $30,769.23. (NPC does not divide your salary by 12 months, they divide annual salary by 52 weeks. Do the math and you will figure out why...you get LESS!) If you divide 80,000 by 12 months ($6,666.66 mo) x 5 months (20 weeks), that equals $33,333.33. Divide by 52 weeks and multiply by 20 = $30,769.23, which is $2,564.10 less than they if they calculated monthly vs. weekly.
NOW..............
Multiply $30,769.23 x 40% and your check will be $18,461.54. How in the world can you make a statement that you can live on this for 7 months? $18,461.54 divided by 7 months is
$2,637.36 a month. Most of the home mortgages are between $1,500-$2,500, not considering utilities, insurance, loans, tuition, medical bills, etc, etc, etc.
It gives you enough to live for 60 days only to then lose your mortgage, car, loans, and file bankruptcy. Hello?
Click to expand...

That's a lot of work, but it doesn't make it right. Between the paid time off until your separation, 20 weeks on top of that, $2500, accrued/rolled over vacation, bonus and unemployment you stand have taxable earnings very similar to what you would have had by working over the course of 7 months. Then you get a year's worth of health insurance on top of that.

NVS is paying a better severance than anyone else in the industry from what I can tell. Is it enough? That all depends on how much beyond your means you were living before this happened and what contingency plans you've made in the last couple years as the industry has imploded right before your very eyes.
 


















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