What Is a Severance Tax?

Answer States often institute a severance tax to make up for a budget shortfall. Texas ordered the first severance tax in 1905, and Louisiana and Michigan soon followed in the 1920s.IdentificationStates l... Read More »

Top Q&A For: What Is a Severance Tax

What was the Dow Chemical severance package?

Roughly 60 to 65 people accepted the Dow Chemical severance package in January 2009. Full-time union workers received a lump sum of $6,000. They also were given another $1,100 for each year of serv... Read More »

How to Negotiate Severance?

A severance package is a group of optional benefits awarded to a terminated or laid-off employee. Benefits may include additional salary, continued health insurance or other items. Your post-employ... Read More »

Are severance payments tax free?

Severance pay is considered taxable income. You should have taxes withheld from your severance pay or make an estimated tax payment to avoid fines and penalties when you file your income tax return... Read More »

How to Sign a Severance Agreement?

A severance agreement is a legally binding document you sign when you are asked to leave your position at work. A severance agreement, also known as a termination agreement, is common when a compan... Read More »