Gratuity or Separation Pay, Taxable or Tax Exempted? Please Share Ideas Here.
August 13, 2008 3:36am CST
our company will soon be taken over by a new employer and our current employer now agreed to pay us a gratuity pay or separation pay upon the assumption of the new owner. but one common question of employees, are these separation pays taxable or tax excluded? thank you so much to all the respondents!
13 Aug 08
If we are going to follow the law, separation pay are taxable. Retirement pay for those who reached the retirement age are the one that is non taxable. It depends upon your company to taxed you, there were those who can hide the taxes to other accounts so that employees can still enjoy their pay or they can taxed you half and the other half will shoulder by the company. Are you not going to be transferred laterally? This is one good option so you can enjoy your tenure.