How do I pay taxes on severance package?
February 11, 2006 11:45 PM Subscribe
I was just laid off and luckily received a severance package. What do I do about paying tax on it?
I received a lump sum amount for three months pay. However, my employer (very small company) did not take out any of the usual taxes. How do I go about taking care of this? Do I need to pay something now or does it wait until I do my 2006 taxes? What about social security?