🇺🇸United States Severance Pay Calculator
Estimate a US layoff severance package: 1-2 weeks pay per year of tenure, accrued vacation/PTO payout, and supplemental wage tax withholding.
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United States Severance Framework
Corporate Severance Standard Benchmark (WARN Act & Fair Labor) • Currency: USD ($)
Employment & Wage Parameters
$
$500$25,000
yrs
0 yrs40 yrs
mos
0 mos11 mos
$
$0$50,000
days
0 days45 days
0.253
Estimated Net Severance Take-Home
$7,143
Gross Total$10,154
Est. Taxes$3,011
Effective Tax29.7%
Applied Statutory Calculation Formula:
2 weeks pay ($1,269/wk) × 4.0 years
Take-Home$7K
Severance Package Distribution
Net Take-Home70%
$7,143
Withheld Taxes29.7%
$3,011
Statutory Severance Itemized BreakdownTotal Service: 48 continuous months
Severance Compensation (2 wks per year)Standard corporate layoff separation benchmark
$10,154Federal Supplemental Withholding Tax (22%)Flat supplemental wage withholding rate
$2,234FICA (Social Security 6.2% + Medicare 1.45%)Severance pay is subject to payroll taxes
$777United States Statutory Termination Law: Corporate Severance Standard Benchmark (WARN Act & Fair Labor)
While US federal law (FLSA) does not mandate severance pay for private employees, typical corporate policy and separation agreements provide 1 to 2 weeks of base salary for each year of service, plus payout of accrued unused PTO.
Standard corporate benchmark: 1 to 2 weeks of base pay per completed year of service.
Accrued paid time off (PTO) / vacation payout balance addition.
Federal WARN Act 60-day pay compliance indicator for large layoffs (100+ employees).
Supplemental wage federal withholding (22%) plus FICA payroll taxes (7.65%); state taxes not included.
Compare with Other International Severance Models
Frequently Asked Questions
What is the statutory severance formula in United States?
While US federal law (FLSA) does not mandate severance pay for private employees, typical corporate policy and separation agreements provide 1 to 2 weeks of base salary for each year of service, plus payout of accrued unused PTO.