Complete IT Layoff Severance & Retention Package Calculator (2026)

Model your exit runway, vesting RSUs, and taxation limits.

Severance Modeler

Parameters

Your Exit Package

Severance Weeks Total8 Weeks
Gross Cash Severance$23,077
Estimated Source Withholding Tax-$6,923
Net Cash in Hand$16,154
Accelerated RSUs Saved$20,000
Total Effective Value$43,077

1. How Tech Severance Works

Here is how it works: base pay is only part of the equation. Standard tech severance involves weeks per year of service, healthcare COBRA stipends, and RSU vesting cliffs.

Base Pay Calculations

Typically 2-4 weeks per year of service for big tech.

RSU Acceleration

Often, unvested equity is accelerated to the next cliff date.

2. The Taxation Trap

But here is the problem: lump-sum severance is taxed aggressively at source.

Withholding Tax Rates

Amounts over $15,000 face immediate 30% withholding.

RRSP Rollovers

Using a Retiring Allowance transfer can shield this money.

3. Negotiation Leverage

This might work for you: you can often negotiate the non-compete clauses tied to the severance.

The WARN Act

Understand the 60-day notice minimums for massive layoffs.