How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Barbara Your Own Question
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3294
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
Type Your Tax Question Here...
Barbara is online now
A new question is answered every 9 seconds

This is ***** *****. I was wondering how severance pay is

Customer Question

Hi this is ***** *****. I was wondering how severance pay is taxed in California. How much do I get paid out if the gross severance amount is $66000
JA: Thanks. Can you give me any more details about your issue?
Customer: my employment will get terminated and the employer offers me a one time package of $66000
JA: OK got it. Last thing — Tax Professionals generally expect a deposit of about $32 to help with your type of question (you only pay if satisfied). Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.
Submitted: 1 year ago.
Category: Tax
Expert:  Barbara replied 1 year ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Severance pay is subject to federal and CA tax.

The standard withholding rate for federal taxes on severance pay is 25 percent. The employer may choose to use the aggregate method. Using the aggregate method, the employer would add the supplemental wages to regular wages and calculate the total amount as regular wages.

The standard withholding rate for California state taxes is 6 percent.

Please let me know if you require further information or clarification.

Thank you and best regards,


Expert:  Barbara replied 1 year ago.

Just following up with you to see if you have any other questions or concerns. If so, please come back to me here, and I will be happy to assist you.

Best regards,