Severance Package - Termination Pay
Received a severance package? Tax Doctors Canada will protect your severance pay from taxes and provide important financial planning for security.
Have you just lost your job? Are you receiving a severance package? Concerned about how to invest the severance pay? How much money will you need to live on? What can you invest for the long term? What are severance pay rules? How much tax will you pay on your severance pay? The advisors at Tax Doctors Canada can answer your questions and devise an effective and prudent financial plan.
Quick Facts about Severance Packages:
Lump sum payments can put you into a high tax bracket resulting in a large tax bill.
Your current group retirement savings plan / pension can be transferred to a retirement savings plan or a locked in retirement savings plan when you are terminated.
Consider maximizing your Rsp and TFSA.
Consider a retiring allowance..
Consider setting up a trust.
Consider asking your employer to pay the severance over multiple periods.
If legal help is also needed, Tax Doctors Canada has expert associate lawyers available who work in close conjunction with Tax Doctors Canada to best advance and protect your interests legally and financially. Severance pay rules can be complex; so a consultation with a lawyer is prudent.
The financial advisors at Tax Doctors Canada will help you manage your severance plan, and our associate lawyers can provide advice regarding how much is reasonable for your severance package and help you negotiate the best deal possible. In our experience, a week’s pay for each year of service is very common but each situation can have unique solutions hence the need for the top notch legal and financial advisers at Tax Doctors Canada to protect your financial interests for maximum benefit to you.
Benefits of Tax Doctors Canada assistance:
Tax planning: There may be opportunities to reduce the tax you pay on the severance payment.
Efficiency: Our parent company, GTA Wealth Management Inc., can assist with investment options. This eliminates the need to see multiple advisors. We can also recommend an associate lawyer to ensure your receive the appropriate severance payment.
Comprehensive: GTA Wealth Management Inc. (parent company of Tax Doctors Canada) can assist with a free review of your current investments and a review of your current wealth building plan.
Expertise: You will be able to discuss your situation with an accountant and / or financial planner.
Legal Assistance: Associate Lawyers available if needed.
Tax on severance pay can be high if steps are not taken reduce the taxes on severance pay. The advisors at Tax Doctors Canada can help you reduce the tax on your severance pay. The severance pay can be a large sum of money. This will most likely push you into the top tax bracket (approximately 46% tax rate). Approximately half of your severance pay could go to pay the taxman! Tax Doctors Canada can decrease the tax burden on your severance package.
Tax Doctors Canada can also provide you with tax efficient investment solutions to reduce the tax on the investment income from your severance pay. Tax Doctors Canada will help you manage your investments to increase your financial wealth, minimize your risk and maximize your severance package.
With the multidisciplinary team of experts at Tax Doctors Canada on your side, you can be assured that you will be in the most advantageous position regarding your severance package settlement. You can count on the team at Tax Doctors Canada to get the best solution for you.
Do not hesitate to call toll free at 1 855 TAX DOCS (855 829 3627) or use the contact form on this page for a free initial consultation with the professional accountants at Tax Doctors Canada. You will receive top notch service. Tax Doctors Canada has four locations in Toronto, Mississauga and Markham to serve you.
Contact us using the web form below or call toll free at 1 855 TAX DOCS (855 829 3627) for a free initial phone consultation. We have convenient locations in Mississauga, Toronto and Markham to serve you.