<prompt> Human: Hi all,I have just received my severance pay - 6 weeks of pay - after being laid off 2 weeks ago.My tax withholding was at 1737; when I was getting my regular salary, but the severance pay was taxed at 3037; !!!how is this possible? any help would be greatly appreciated!  <response>: Tax withholding is not the same as being taxed. If tax withholding is more than tax liability, youll get a tax refund.Tax withholding is based on a formula that takes pay frequency, pay amount, and W-4 allowances into account. If all parameters stay the same except the amount, the percentage withheld will be higher -- it is as if you get a huge promotion. 