Severance Calculator
State-specific tax, WARN Act analysis, OWBPA review window, COBRA cost, equity at termination, and a printable negotiation guide.
Your situation
Severance benchmarks
| Band | Weeks | Gross |
|---|---|---|
| Typical | 7.5 | $21,635 |
| Good | 12.5 | $36,058 |
| Aggressive | 20.0 | $57,692 |
Benchmarks are derived from publicly reported severance norms across US corporate layoffs. Weeks/year scale with role level; tenure <1 year gets a floor; cap at 52 weeks. These are negotiation reference points, not promises.
Tax breakdown (at typical band)
| Gross | $21,635 |
| Federal supplemental (22%) | −$4,760 |
| State supplemental | −$1,428 |
| FICA — Social Security | −$1,341 |
| FICA — Medicare | −$314 |
| FICA — Additional Medicare | −$0 |
| Net cash | $13,792 |
WARN Act
Not a group layoff
OWBPA review window
Individual exit (21-day review window) under the Older Workers Benefit Protection Act, plus 7-day revocation right.
Review window: 21 days · Revocation: 7 days after signing
COBRA cost
Monthly: $0
Annual: $0
Enter your employer-side monthly premium for an estimate.
Equity at termination
Forfeited unvested: $0
ISO exercise window post-termination: 90 days
- ISO holders: you typically have 90 days post-termination to exercise vested ISOs before they convert to NSOs.
FAQ
- How is severance taxed?
- Severance is taxed as supplemental wages. The federal government withholds 22% on the first $1,000,000 of supplemental wages in a calendar year and 37% on amounts above that, plus FICA and any state withholding.
- Is severance required by law?
- No federal law requires private employers to pay severance, with limited exceptions. Some states (notably New Jersey for mass layoffs and Maine for plant closings) require statutory severance under specific conditions.
- What is OWBPA?
- The Older Workers Benefit Protection Act applies when an employee age 40 or older signs a severance agreement waiving age-discrimination claims. It requires at least 21 days to review (45 for group exits) and 7 days to revoke after signing.
- Does WARN apply to my layoff?
- Federal WARN applies to employers with 100 or more full-time employees when 50 or more employees at a single site of employment are affected, requiring 60 days advance notice or pay in lieu. Several states have lower thresholds and longer notice periods.