Termination Pay: When to Pay It,
How to Pay It, and How to Tax It
An employee's exit from your organization is the most dangerous time — from a legal AND tax perspective.
To find out if your termination pay practices are correct and compliant with federal and state employment tax regulations, join payroll expert Mindy Harada Mayo for Termination Pay: When to Pay It, How to Pay It, and How to Tax It.
Mindy reveals answers to questions like:
- How quickly must you deliver that final paycheck? State laws vary: 14 days? 7 days? 72 hours?
- What records should you retain for departing employees?
- What are the rules on severance pay: Is it taxable for federal purposes? How about for state? If severance is paid, can the employee receive unemployment benefits?
- Is there a difference between providing wage continuation versus lump sum severance?
- Can you deduct from an employee's final paycheck to recoup for lost company equipment? Can you deduct amounts owed to you by the employee?
Understanding answers to questions like these is essential to your HR and payroll compliance.
More lawsuits and fines are triggered by termination mistakes than at any time during the employees' tenure. And pay mistakes lead the way.
- When you have to pay a terminated employee in order to comply with wage-and-hour rules.
- How to handle important withholding issues.
- Which records to keep (and which to toss) for terminated workers.
- How to reduce your FICA and FUTA tax and employee withholding.
- How to use Supplemental Unemployment Benefit Plans to cut your severance costs.
Termination pay is one of your most complex and confusing duties. Don't go it alone … and don't try to guess at the compliance rules. The risks are way too high. Make sure you have the information you need to make the right decisions and avoid expensive fines and lawsuits.
Pat DiDomenico, Editorial Director
P.S. Your satisfaction is unconditionally guaranteed. If Termination Pay fails to meet your needs, we will refund every penny you paid – no hassles, no questions asked.
About Your Speaker:
Mindy Harada-Mayo is an employment tax specialist with more than 20 years of experience as an employee of two of the Big Four accounting firms and a payroll tax auditor with the state of California. She is currently a director with the Human Capital Tax Practice at Ryan, LLC. Ryan is an award-winning global tax services firm with the largest indirect tax practice in North America. Mindy is a frequent presenter around the country on employment tax and compensation issues.
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