20 CFR 234.58
§ 234.58 Computation of the separation allowance lump-sum payment.
United States · 20 CFR — Employees' Benefits · Status: effective
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- Citation
- 20 CFR 234.58, § 234.58 Computation of the separation allowance lump-sum payment, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/77582
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Full text
The separation allowance lump-sum payment is calculated as follows:
(a) Determine the amount of the compensation due to the receipt of separation or severance pay that could not be considered in the computation of tier II;
(b) Multiply this amount by the rate or rates of tax imposed by section 3201(b) of the Internal Revenue Code of 1954 or 1986 on the compensation (tier II tax); and
(c) The product is the amount of the separation allowance lump-sum payment.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.