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Is severance pay taxed as income?
Yes, typically it is, although it can also be paid as what’s called a ‘retiring allowance’, which would reduce the tax burden. If you have been offered a severance package, before you accept, be sure to use our Ontario Severance Pay Calculator, and give us a call at the number below to discuss your situation in more detail. The initial call to our staff is free, and we would be happy to help you out as best we can.