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Severance Planning Calculator
Plan severance for an entire reduction in one workbook. Set your weeks-per-year policy once, enter everyone affected, and see the cost of each package and the group total, including accrued time off, benefits, and outplacement.
Set your weeks-of-pay-per-year-of-service formula once, including any floor or cap. Enter each affected employee's salary and years of service. The workbook calculates severance for each person, then adds accrued time off, benefits continuation, outplacement, and approximate employer payroll tax. See subtotals by employee and the total cost across the reduction. The one-page Summary shows headcount, total severance, and all-in cost. The Notice and Timeline tab includes screening prompts and date calculations for notice and release planning. The Benchmark tab shows typical severance by role level. A worked example lets you review the calculations before entering your own data. Duplicate the file to compare two policies side by side.
Apply one severance formula across every employee in your plan. The workbook uses the same weeks-per-year policy and any caps to calculate each package consistently, supporting a defensible reduction. Accrued time off, benefits continuation, and outplacement are added to the base payout so you can plan for the loaded cash cost of the reduction, rather than base pay alone.
For a quick estimate for one person, the free Severance Pay calculator calculates a single package in your browser. For the full financial picture of a reduction, including costs, ongoing savings, and payback, see the RIF and Restructuring Savings Planner.
What format is it, and can I edit it?
You receive one Excel workbook that also works in Google Sheets. The download is five files: the workbook, a Start Here, the one-page Quick Reference, the product license, and a short guide to using it in Google Sheets. Every input and formula is editable. Duplicate the file to plan a second reduction or compare two policies side by side. Your download link appears immediately after checkout, and the same link arrives by email on your receipt.
How does this workbook compare with the free Severance Pay calculator?
The free Severance Pay calculator estimates one person's package. This workbook applies one policy across every affected employee and calculates each package and the total group cost, including accrued time off, benefits, and outplacement. A board-ready summary brings the figures together. Set your assumptions once, review every formula, and reuse the workbook for another reduction.
How accurate are the estimates, and what about legal requirements?
The workbook calculates planning estimates from the policy and employee figures you enter. In most cases, there is no legal requirement to pay severance. Your policy or a contract sets the terms. A reduction can trigger notice rules such as the federal WARN Act, final-pay timing, release agreements, and protected-group considerations that vary by employer size, location, and circumstances. The Notice and Timeline tab provides planning prompts and date calculations rather than a legal determination. Have an employment attorney review the reduction before you act.
Does it include accrued time off, benefits, and outplacement?
Yes. On top of the base severance from your formula, the workbook adds the value of accrued, unused time off, employer-paid benefits continuation for the months you set, outplacement if you offer it, and an approximate employer payroll tax on the severance, so the planned cost is the loaded cash cost. Leave any line at zero if it does not apply.
What is the refund policy?
Digital products are covered by a 30-day money-back guarantee. To request a refund, email support@truestephr.com or reply to your receipt within 30 days of purchase. Questions? Email support@truestephr.com.
These are planning estimates, not legal or tax advice. Severance is generally set by employer policy or contract rather than by law. Have a qualified professional review applicable legal and tax requirements, including notice, release, and protected-group considerations that vary by employer size and location.
How the download works
Your files arrive as a single ZIP download, best opened on a computer. Save it, extract it (right-click and select Extract All on Windows, or double-click on a Mac), then open the Start Here file first. PDFs open in any reader, and editable files work in Microsoft Excel or free equivalents, including LibreOffice and Google Sheets. No other software is needed. Step-by-step help for every device is at truestephr.com/pages/download-help.
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