Severance Pay Calculator
Calculate your total severance compensation package upon employment separation: tenure-based weeks of pay, accrued unused PTO payouts, and subsidized COBRA healthcare continuation.
Severance Package & Separation Agreement
Total Gross Package
$26,842
10 severance weeks
Estimated Net Payout
$18,876
After ~32% supplemental tax
Base Severance Salary
$18,462
10 weeks @ $1,846/wk
PTO & Health Subsidies
$6,381
12 PTO days + 3 mo COBRA
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
- 1Enter your gross annual base salary.
- 2Specify your completed years of service at the company.
- 3Enter weeks of severance offered per year of tenure (commonly 1 to 2 weeks).
- 4Input the company minimum guaranteed severance weeks floor.
- 5Enter accrued unused PTO days and subsidized health continuation months.
- 6Review total gross separation value and estimated net cash payout.
Assumptions & Limitations
- Estimates are based on standard national averages and current prevailing construction materials and contractor rates.
- Actual trade bids may fluctuate according to local building code requirements, permit fees, and site topography.
- Always obtain multiple written bids from licensed, bonded, and insured contractors before commencing work.
Frequently Asked Questions
Is severance pay legally required under federal US law?
The Fair Labor Standards Act (FLSA) does not mandate severance pay. Severance is a matter of contractual agreement between employer and employee, company policy, or union collective bargaining agreements, except in certain mass layoff scenarios under the WARN Act.
How is severance pay taxed in the United States?
The IRS considers severance pay as supplemental wages. Employers typically withhold a flat 22% federal income tax rate on supplemental wages up to \$1 million, plus 7.65% FICA (Social Security and Medicare) and applicable state income taxes.
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