How is severance pay calculated?

Most U.S. severance packages use a simple formula: a number of weeks of pay for every year of service — typically one to two weeks per year, sometimes capped at a maximum (for example 26 weeks). Example: $85,000 salary is about $1,635/week; with 5 years of service at 2 weeks per year, that's 10 weeks, or roughly $16,350 gross. Senior roles and negotiated agreements can be higher. The SeveranceWorth calculator lets you plug in your own salary, tenure, and policy.

Is severance pay taxed like a bonus?

Yes. The IRS treats severance as 'supplemental wages', the same category as bonuses. When paid separately from regular wages, employers typically withhold a flat 22% for federal income tax (37% on any amount over $1 million), plus Social Security (6.2% up to the annual wage base) and Medicare (1.45%), plus any state income tax. Withholding is not your final tax bill — your actual tax is settled when you file your return.

Can I collect unemployment benefits and severance at the same time?

It depends on your state and on how the severance is paid. In many states a one-time lump sum does not block unemployment benefits, while 'salary continuation' severance (staying on payroll for X weeks) can delay eligibility until the payments end. Some states reduce benefits dollar-for-dollar during the severance period. File for unemployment right away regardless — your state agency will tell you when benefits start.

Is my employer required to pay severance?

In most cases, no. U.S. federal law (the FLSA) does not require severance pay. You are generally entitled to it only if your employment contract or offer letter promises it, the company has an established written severance policy, a union agreement covers it, or it is offered in exchange for signing a release of claims. Employers do owe your final paycheck and accrued PTO where state law requires it.

What is the WARN Act?

The federal WARN Act requires employers with 100 or more full-time employees to give 60 days' written notice before a mass layoff or plant closing. If proper notice isn't given, affected workers may be entitled to up to 60 days of back pay and benefits. Several states (like California and New York) have stricter 'mini-WARN' laws covering smaller employers. WARN pay is separate from — and can be in addition to — severance.

How much does COBRA cost per month?

Under COBRA you pay the entire premium — the share you paid as an employee plus everything your employer was covering — plus an administrative fee of up to 2%. Because employers typically cover 70–80% of the premium, COBRA often costs 4–5x what came out of your paycheck: commonly $600–$800+/month for individual coverage and $1,800–$2,400+/month for family coverage. Always compare against ACA marketplace plans at healthcare.gov before electing.

Can I negotiate my severance package?

Often, yes — especially when you're asked to sign a release of legal claims, which is what the company is paying for. You can ask for more weeks of pay, payment of your COBRA premiums for several months, an extended exercise window on stock options, vesting of near-term equity, a neutral reference, and outplacement support. You typically have at least 21 days to consider a release if you're over 40 (ADEA), so don't sign on the spot.

Does SeveranceWorth store my salary information?

No. Every calculator runs entirely in your browser. The numbers you type — salary, savings, expenses, premiums — are never transmitted, stored, or seen by anyone. There is no backend, no database, and no account. Refresh the page and everything is gone.

Privacy Policy

Effective date: July 3, 2026

The short version

SeveranceWorth (severanceworth.com) is a set of free calculators that run entirely in your web browser. The numbers you type — salary, years of service, savings, expenses, insurance premiums — are processed on your device only. They are never transmitted to us or anyone else, never stored, and never seen by a human or a server. We have no accounts, no databases of user data, and no way to identify you from your use of the calculators.

1. Information we collect

We do not collect, store, or process any personal information you enter into the calculators. There is no signup, no login, and no contact form. If you choose to email us, we will see the information you include in your email and use it only to respond.

2. Calculator inputs stay on your device

All calculations are performed client-side in JavaScript. Your financial details exist only in your browser's memory while the page is open. Refreshing or closing the tab discards them. Nothing you type is included in any network request made by this site.

3. Advertising (Google AdSense) and cookies

SeveranceWorth is supported by advertising served through Google AdSense. Google and its partners use cookies — including the DoubleClick cookie — to serve ads based on your prior visits to this and other websites, to measure ad performance, and to prevent fraud. These cookies are set by Google, not by us, and we do not have access to the data they collect.

You can opt out of personalized advertising by visiting Google Ads Settings.
You can learn how Google uses data from sites that use its services at policies.google.com/technologies/partner-sites.
You can opt out of some third-party ad cookies at aboutads.info/choices.

4. Analytics

We use Google Analytics to understand aggregate site usage — page views, approximate geography, device type. Analytics never receives the numbers you type into the calculators. You can block analytics with any standard content blocker or the Google Analytics opt-out browser add-on, and the calculators will work exactly the same.

5. Donations

The cryptocurrency donation addresses on this site are receive-only. Sending a donation reveals to us only what any blockchain transaction reveals publicly — we receive no name, email, or other personal information from it.

6. Children's privacy

This site is not directed at children under 13 and, given that we collect no personal information, we do not knowingly collect personal information from anyone, including children.

7. Changes to this policy

If we ever change how the site works in a way that affects privacy, we will update this page and the effective date above. Given the site's design — static pages plus client-side math — meaningful changes are unlikely.

8. Contact

Questions about this policy, advertising, or anything else: brusmarvy@gmail.com