New York Severance — NYS-WARN 90 Days, 11.70% Tax, 2026
By Severance Calculator Editorial · Updated
New York WARN: what applies
New York WARN Act (N.Y. Lab. Law § 860) applies to employers with 50 or more employees and requires 90 days advance notice for mass layoffs, relocations, or plant closings affecting 25 or more employees at a single site. Notice period is 30 days longer than federal WARN, and the employer-size threshold is half.
How severance is taxed in New York
New York treats severance as supplemental wages and withholds at 11.70% for 2026. Severance paid to NYC residents is additionally subject to New York City supplemental withholding of approximately 4.25%.
Calculate your situation
Inputs default to New York; adjust to your specifics.
Your situation
Severance benchmarks
Typical benchmark
$24,519
7.5 weeks · methodology: 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.
| Band | Weeks | Gross |
|---|---|---|
| Typical | 7.5 | $24,519 |
| Good | 12.5 | $40,865 |
| Aggressive | 20.0 | $65,385 |
Tax breakdown (typical band)
| Gross | $24,519 |
| Federal supplemental | −$5,394 |
| State supplemental | −$1,618 |
| FICA — Social Security | −$1,520 |
| FICA — Medicare | −$356 |
| FICA — Additional Medicare | −$0 |
| Net cash | $15,631 |
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 New York require severance pay?
- No New York statute generally requires private employers to pay severance. NYS-WARN requires 90 days advance notice (or pay-in-lieu) for covered mass layoffs at employers of 50+; it does not mandate severance beyond that.
- How is severance taxed in New York?
- New York withholds at 11.70% on severance treated as supplemental wages (2026 rate). NYC residents also owe New York City supplemental withholding around 4.25%. Plus the federal 22% supplemental rate (37% on amounts above $1,000,000 cumulative for the year), plus FICA. State income tax is reconciled on your New York return.
- What is NYS-WARN and how is it different from federal WARN?
- NYS-WARN covers smaller employers (50+ vs federal 100+), requires longer notice (90 days vs federal 60), and a lower affected-employee threshold (25 vs federal 50 at a single site). Penalties for non-compliance include back pay for each day notice was not given.
- Does OWBPA apply in New York?
- Yes. OWBPA is federal and applies in all states. 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.
- Does New York have its own dismissal-pay rule beyond WARN?
- New York Labor Law § 591(6) treats severance as wages for unemployment purposes only if it is allocated to a specific time period and exceeds the maximum weekly benefit. Lump-sum severance generally does not delay New York unemployment benefits; severance paid as "wages in lieu of notice" over a specific period typically does delay benefits during that period. The New York DOL ID Office determines the impact when you file.
- Does NYC city tax apply to my severance?
- Yes if you are a NYC resident at the time of payment. New York City supplemental withholding is approximately 4.25% (Brooklyn / Manhattan / Bronx / Queens / Staten Island). If you have moved out of NYC by the time the severance is paid and your employer has documentation, NYC withholding may not apply — confirm with payroll. NY State withholding at 11.70% applies regardless of city residency for NY-state employees.
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