Severance negotiation letter
Got a severance offer? Enter your salary, tenure, and the offer, get your benchmark and after-withholding math verified on this device, and generate a formal counteroffer letter that asks for a specific package.
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Severance math, verified here
Computed on your device from your numbers, using the weeks-per-year figure you enter. The 22% figure is the standard supplemental-wage withholding rate, shown so you can compare gross and net; it is an estimate, not tax advice, and your final tax depends on your total income for the year. The letter quotes these exact figures, never AI-guessed math.
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2. Enter the numbers (or load an example)
3. Hit Generate
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- Do not sign on the spot: take the agreement home and read the release, noncompete, and equity clauses in full
- Send the counter in writing with proof: email with a read receipt, or a signed copy if hand-delivered
- Keep working normally and professionally while you negotiate
- Get any revised offer in writing and signed before the signing deadline
- Keep a copy of the offer, the counter, and every reply in one folder, plus an offer-vs-counter tracker of each term
- Get a lawyer or tax professional to review the agreement before you sign, especially a broad release or noncompete
What actually works
The first offer is a starting point
Severance offers are often presented as a standard form, which makes them feel non-negotiable. They usually are not. Employers expect some back and forth, and a calm, specific, written counter costs you nothing as long as you have not signed and do not make threats.
Weeks per year is the common yardstick
One to two weeks of pay per year of service is the most common formula, sometimes with a minimum. There is no universal rule, so the tool estimates your benchmark from the figure you enter and compares it with the offer, rather than asserting a standard your employer never promised.
Non-cash terms can be worth more than cash
Extended health coverage, accelerated equity, a positive reference, outplacement, and a later last day can each be worth thousands and are sometimes easier for an employer to grant than a bigger check. Ask for the package, not just the number.
Never sign under a deadline you did not choose
A short signing deadline is pressure, not a legal fact you must accept. Asking for more time to get advice is a normal, reasonable request, and it is the single most common reason people regret signing: the release they signed away was broader than they understood.
FAQ
Can you negotiate a severance package?
Often, yes. A first severance offer is usually a starting point, not a final number, especially when it is presented as a standard form. Employers expect some back and forth in many cases. Ask in writing, calmly and specifically, and do not sign first or make threats.
How is severance pay usually calculated?
Many employers use a weeks-per-year formula, commonly one to two weeks of pay per year of service, sometimes with a minimum. There is no universal rule, and the agreement itself controls. This tool estimates a benchmark from the salary, tenure, and weeks-per-year figure you enter so you can compare it with the offer in front of you.
What should I ask for besides more severance pay?
Extended health coverage, accelerated equity vesting, a positive reference, outplacement help, a later last working day, and a narrower noncompete are all commonly negotiated. Non-cash items can be worth more than a small pay bump.
How much severance tax is withheld?
Severance is generally treated as supplemental wages, and federal withholding on supplemental wages is commonly 22 percent, plus state withholding where applicable. Your final tax bill depends on your total income for the year, so the 22 percent figure is a withholding estimate, not your tax rate and not tax advice.
Should I sign a severance agreement right away?
No. Take the document home, read every line, and get advice before you sign. A severance agreement usually includes a release, which means you give up the right to bring certain claims in exchange for the package. Once signed, that trade is very hard to undo.
Is this legal or tax advice?
No. This tool drafts a negotiation letter from the facts you enter and estimates severance figures from your numbers. It is general information only. Get a lawyer or tax professional to review your agreement before you sign, especially if it includes a broad release, a noncompete, or equity terms.