Quote:
Originally Posted by lazypucker
Think about it:
If you joined Shaw as an installer or customer rep when you were 20 years old, you now work for 20 years. At age 40 you get a package of about 2 years' salary. But you will be heavily taxed, ....
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Or maybe not taxed at all. All of the severance paid can be tax free. Doing this right, you could bank your 2 years severance into a retiring allowance without source deductions and go work. Four years pay in 2 years. Catch up on your RRSP.
Highlights:
A retiring allowance is an amount you receive on or after retirement from an office or employment in recognition of long service.
You may also receive this amount if you lose your office or employment, whether you were dismissed or have resigned.
Tax will
not be withheld from the part of your retiring allowance that your employer transfers directly to your RRSP, RPP, PRPP, or your SPP.
https://www.canada.ca/en/revenue-age...rance-pay.html
EDIT: I have settled files on the employer side where I had to hint to lawyers acting for the employee this was an option, where they were just going to have the tax deducted.
EDIT 2: This is a very decent offer from Shaw.