California Severance Calculator — Cal-WARN, State Tax, and 2026 Norms
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California WARN: what applies
California WARN (Cal-WARN) covers employers with 75 or more employees and requires 60 days notice for any covered mass layoff, relocation, or termination affecting 50 or more employees in a 30-day period — without the federal "single site" or 33% workforce requirements.
How severance is taxed in California
California treats severance as supplemental wages. The state supplemental withholding rate is 6.6%; stock and bonus payments are withheld at 10.23%.
Calculate your situation
Inputs default to California; adjust to your specifics.
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
- Does California require severance pay?
- No California statute generally requires private employers to pay severance. Cal-WARN requires 60 days advance notice or pay-in-lieu for covered mass layoffs at employers of 75+; it does not mandate additional severance beyond that.
- How is severance taxed in California?
- California withholds at 6.6% on severance treated as supplemental wages, plus a federal 22% supplemental rate (37% on amounts above $1,000,000 cumulative for the year), plus FICA. State income tax is reconciled on your California return.
- What is Cal-WARN?
- Cal-WARN is California Labor Code §§ 1400–1408. It covers employers with 75 or more employees and requires 60 days advance notice for mass layoffs, relocations, or terminations affecting 50 or more employees in any 30-day period.
- What rights does OWBPA give me in California?
- OWBPA is federal and applies in California: if you are age 40 or older and the employer asks you to sign a waiver of age-discrimination claims, you get 21 days to review (45 for group exits) and 7 days after signing to revoke.