Severance calculator
Enter your pay and years of service to see what the common formula of one to two weeks of pay per year of service comes to, and what paid health coverage adds. Your agreement sets the real number.
Severance pay questions
- How much severance should I get?
- There is no required amount. A common formula is one to two weeks of pay per year of service, and senior roles often get more. Your contract, a company plan or the agreement you are offered sets the amount.
- Is severance pay taxed?
- Severance is generally taxed as wages, so withholding applies and the amount you receive is lower than the figure before taxes.
- Does severance affect unemployment benefits?
- In some states it does. Check your state’s page for how severance counts, and file right away either way.
- Can I negotiate severance?
- Yes. Offers are often negotiable, especially the amount, months of health coverage and the timing of a bonus or equity vest.
More: severance package: what it is and how to negotiate, unemployment benefits by state and health insurance after a layoff.
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