Hi,

A company i'm working on has more than 50% of gross income from qualified business activities. Does anybody here know if we include severance costs into the CA apportionment payroll factor? 

Here it CA FTB's instructions for payroll factors:
"Compensation – means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services. Payments made to an independent contractor, or any other person not properly classifiable as an employee, are excluded."

I'm trying to figure out if that includes severance.

Thanks.