Severance pay for employees
Varies
Can You Write Off Severance Pay for Employees?
Short answer: Yes: severance is deductible compensation and taxable wages to the departing employee.
Settlement payments tied to sexual harassment claims with NDAs aren't deductible.
Records to keep: Keep receipts or invoices, proof of payment, and a short note of the business purpose.
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Severance pay for employees
Varies
General Business
Payroll & Labor
Business Write-Off Questions
Yes: severance is deductible compensation and taxable wages to the departing employee.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Yes: severance is deductible compensation and taxable wages to the departing employee. Settlement payments tied to sexual harassment claims with NDAs aren't deductible.
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- Business Write-Off Questions
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