Severance & PTO Payout Calculator
See what you actually take home from a severance package and unused PTO, including how the 22% supplemental or aggregate withholding method changes your net check.
Unused PTO payout
Payout summary
$44,000 gross (severance + 4,000 PTO) nets to about $26,136 using the 22% supplemental flat rate method.
Withholding breakdown
Supplemental vs aggregate withholding
Severance is usually treated as supplemental pay. Employers may withhold a flat 22% (supplemental method) or add it to your last regular paycheck and withhold using your normal W-4 bracket (aggregate method). The aggregate can withhold far more up front because it stacks on top of the final check — but your real tax is figured at filing, so either way you reconcile at year-end.
What affects your payout
- Whether severance is treated as supplemental (22%) or aggregated
- State rules — some states cap or tax severance differently, or add state flat withholding
- FICA applies to severance and PTO up to the wage base
- Unemployment eligibility can be delayed while collecting severance in some states
Frequently asked questions
Is severance taxed as ordinary income?
Yes. Severance and unused PTO are taxable wages subject to federal income tax, FICA, and most state income taxes. This calculator shows the withholding estimate, not the final tax.
Which withholding method is better?
The supplemental 22% flat rate is often closer to your true rate, so it usually withholds closer to what you owe. The aggregate method can over-withhold on a large final check. You reconcile the difference when you file.
Can I roll severance into a retirement account?
Severance is wages, not a retirement distribution, so it can't be rolled into an IRA. PTO payouts are also wages. Compare your situation against other payroll taxes with the US Paycheck Calculator.
Does severance affect unemployment?
In many states, severance can delay the start of unemployment benefits or reduce early weeks. Check your state's rules separately from the tax math.