Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

If it's a one time payout (to be clear, I'm not that will be the case here? It was for me the only time that I was laid off), I think the withholding would be calculated as though that single payment were a regular salary extrapolated to the entire year. This is similar to what happens if you receive a bonus; to compute the withholding they assume your annual salary is $BONUS * $PAY_PERIOD. So you'd likely be taxed at a much higher rate on that single payment than you would be amortized over a year like a salary is.

You'd get that withheld money back after filing taxes, but most people who are laid off would prefer to have that money now.

If Stripe is making regular salary-like payments instead of one lump sum, then the taxes would be pretty much the same as always.




Consider applying for YC's Fall 2025 batch! Applications are open till Aug 4

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: