Hi Delphision,   form T1213 is a form that you wou...
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Hi Delphision,   form T1213 is a form that you would submit to your payroll and then to CRA in order to request a reduction in tax withholding.  Upon approval, CRA issue a "Letter of Authority" good for one calendar year, or it is issue for one lump sum.  This is the form from CRA web site: http://www.cra-arc.gc.ca/E/pbg/tf/t1213/t1213-14e.pdf  
Because severance payment is not considered employment income such as salary or wages, for payroll purpose, the tax withholding calculation is different, and there is another rate to use, special for lump sum, that can be heavy.  There is no exemption on a severance payment.  These are the rate http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/clcltng/spcl/lmpsm/wthhldng-eng.html, in Quebec there are two rates, federal and provincial, outside Quebec there is only one rate which combines federal and provincial rate.
Also, the user is talking about receiving a severance payment at the end of employment.  Only in Ontario, severance payment is provincially legislated, and with the employees of the federal government.  All other provinces and territories in Canada do not have a provincially legislated severance payment upon termination /lay off of employment.
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