Severance Pay Calculator

Use our Severance Pay Calculator to quickly and accurately calculate the severance pay owed to your employees. Enter their salary, tenure, and termination details to ensure a fair and accurate calculation. Our tool simplifies the process, making it easier for HR professionals to handle severance pay efficiently.

Request Meeting
Lynda, St. Marks School

Electronic timesheets saved me hours of time.

Lynda, St. Mark’s School

Severance Pay Calculator

Request a Meeting


Speak to a specialist to get an up to date rate for your business today.

What Is Severance Pay?

Severance pay is financial compensation given to employees who lose their job due to layoffs, redundancy, or other reasons beyond their control. It usually comes as a lump sum, calculated based on things like how long the employee worked and their final salary.

The Severance Pay Calculator makes it easy for organizations and HR professionals to figure out the right severance amount. Just enter a few details, and you’ll ensure everything aligns with your organization’s policies, legal requirements, and industry standards.

How to Use the Severance Pay Calculator:

Enter Employee Information

Input the employee’s current salary, years of service, and any applicable bonuses or benefits.

Specify Termination Type

Indicate if the termination is voluntary, involuntary, or due to other reasons.

Calculate Severance Pay

Click on the “Calculate” button to instantly generate the severance pay amount the employee is entitled to based on your inputs.

Frequently Asked Questions About Severance Pay Calculator

Severance pay is compensation given to an employee who is laid off or terminated from a company. It’s typically offered to help the employee transition financially after losing their job.

Severance pay is typically calculated based on the employee’s length of service and their final salary. Many employers follow the standard formula of one week or one month of pay for each year of service, though this can vary based on company policy or legal agreements.

While severance pay is not required by federal law in the U.S., certain states, industries, or company policies may mandate severance pay. It’s also common for organizations to offer it as part of their employee benefits package.

Yes! You can use the tool to calculate severance pay for any number of employees by entering the specific details for each one. However, each calculation must be done separately.

Yes, severance pay is generally subject to income tax and deductions such as Social Security and Medicare. Be sure to consult with a tax professional for accurate withholding rates.

Severance pay is typically given as a one-time lump sum following the employee’s termination, but some companies may offer it in installments depending on their policy or the agreement in place.

Yes, after calculating severance pay, you can save or export the results for your records. This feature helps you maintain documentation for compliance or future reference.

Yes, the calculator can accommodate employees from various states or regions. However, severance pay regulations may differ, so always ensure that your calculations align with local labor laws.

Yes, the calculator allows customization to account for extra benefits like bonuses, commissions, or additional severance terms, depending on your company’s policies.

If you believe the result is incorrect, double-check the input details for accuracy. If the issue persists, consult with an HR professional or legal expert to ensure compliance with local regulations and company policies.

The calculator can be adjusted to include any accrued vacation or sick leave. Many employers pay out unused leave in addition to severance, so it’s essential to factor that into the total calculation.

Table of Contents

→ Index