Is pay in lieu of 30 days notice - severance or wages?

[ttex]

What is the name of your state (only U.S. law)? Texas
I was terminated from my job, as part of a downsizing, no fault of my own, on Dec.20, 2007, last day on the job. I was paid for my vacation, bonuses, and severance pay in 2008. All of the terminated employees, 80-100, were given,"pay in lieu of 30 days notice", which was paid on a regular pay day cycle through Feb. 2008. Social Security has asked fo a adjusted income form to be filed, my employer has listed the severance, bonus and vacation on the form. However, they listed the "pay in lieu", as regular pay or wages.
They will not budge on their stand, I say "pay in lieu" is part of the severance pay! Who is right?
ttex

 

[eerelations]

Your argument is worthy, however, so is SS's. If you were paid this "pay-in-lieu" over regular pay periods, and taxed at regular pay rates, then SS is correct in viewing this "pay-in-lieu" as regular wages.

You can fight this but I think it's seriously unlikely you'll win. Only you can determine the value of the energy you'll waste on this.

 

[commentator]

Wages in lieu of notice and severance pay are always considered two different things by definition.

Read your last line there. They will not budge on it. Hey, they're right.

It's your employer you're arguing with, right? Because I've never heard of anyone who actually got S.S. or the I.R.S. to argue back. They don't care.

 

[cbg]

They will not budge on their stand, I say "pay in lieu" is part of the severance pay! Who is right?

They are. 'Nuff said.