How do we pay a one-time severance pay / separation benefit?
We need to pay a former employee a one time severance pay / separation benefit of $36,200. We want to withhold taxes. When we enter it in our QB payroll as "bonus" (following the instructions for severance pay in the link below) the withholding is high: 43% (total pay $15,600). Is this right? Why is it so high?
[Severance pay instructions: community.intuit.com/articles/1762950-set-up-severance-pay-in-quickbooks-desktop-payroll]