When workers are laid off, they are often given severance pay, in addition to other unpaid wages and unused vacation time and sick leave. As with their regular wages, those who receive their final check are required to pay taxes on severance pay. Therefore, if taxes are not withheld in the check for the severance pay, the displaced worker must plan on paying them himself when he does his tax returns. In addition, not withholding taxes in a severance paycheck could push the former employer into a higher tax bracket. With that in mind, experts suggest that a soon-to-be laid off worker request that taxes be withheld in the severance check. On the other hand, if the severance pay is for a large amount, the employee may attempt to negotiate with the company to pay it out over at least two tax years.