Severance Pay In A Nutshell – What Is It? How Does It Work?
Severance pay is compensation offered by companies to employees who are laid off or terminated, providing financial support during their job search.
The amount of severance pay an employee receives is often based on their tenure, position, and other factors, and it may include benefits like health insurance and retirement accounts.
Severance pay is subject to taxation, with the tax rate depending on whether it's paid separately or as part of regular wages.