This Is For Real

I had a momentary loss of resolve today when my severance check arrived in the mail.  There was something sort of hopeful about having one check still coming, and actually having it actually in my hands, and knowing that is the last paycheck I can expect for an indefinite time, put me back on my heels a bit.  I felt a sudden urge to call up all the headhunters in my contacts file and put myself on the block for any reasonably paid position.  I didn't, at least not yet - today is Saturday. 

Not helping much was the actual amount of the check, about 60% of the total amount in my severance agreement - much less than I had hoped.  I had increased my exemptions as a final act at work, hoping to get as much out of my severance as possible, so I was a little shocked at how much was taken out, or more to the point, how little take-home pay I actually, well, took home.  My first inclination was to fire off an email to payroll, but I decided to do some research first.  I found this answer on allexperts.com, which seemed to be credible and cleared up the mystery.  Companies can choose how taxes will be withheld in severance checks under $1,000,000 (mine qualifies): either by the aggregate method where normal rates apply and which can be influenced by changing withholding as I had done, or by using a flat rate of 25%, which is impervious to such shenanigans as I tried to pull with my W4.  (It is illegal to claim more withholding allowances than you are legally entitled to.  I am sure I knew that on some level.)  I am not sure what would influence a company to choose one method over another, since they have to pay the entire amount one way or the other.  The only entity immediately affected by the choice - the severed employee - is of course the one who has no say in the proceedings.