Severance Pay in Michigan: Calculator & 2026 Guide
Calculate your estimated severance package in Michigan. Michigan state tax is 4.3%, for a combined 26.3% withholding rate.
Free Severance Pay Calculator
Estimate your severance package based on your salary, years of service, and industry
Michigan Severance Pay Laws
Federal WARN Act requires 60 days notice for layoffs of 50+ employees at companies with 100+ employees.
How Severance Is Taxed in Michigan
| Tax Type | Rate | On $50,000 Severance |
|---|---|---|
| Federal (Supplemental) | 22.0% | $11,000 |
| Michigan State Tax | 4.3% | $2,125 |
| Total Withholding | 26.3% | $13,125 |
| You Keep | 73.8% | $36,875 |
Michigan Severance by Industry
Example: 5 years of service, $75,000 salary, individual contributor in Michigan
| Industry | Weeks/Year | Gross Estimate | After Tax |
|---|---|---|---|
| Technology | 2-4 | $21,635 | $15,956 |
| Finance & Banking | 2-4 | $21,635 | $15,956 |
| Healthcare | 1-3 | $14,423 | $10,637 |
| Retail | 0.5-2 | $7,212 | $5,319 |
| Manufacturing | 1-3 | $14,423 | $10,637 |
| Consulting & Professional Services | 2-4 | $21,635 | $15,956 |
| Government | 1-2 | $7,212 | $5,319 |
| Nonprofit | 1-2 | $10,817 | $7,978 |
| Other Industry | 1-3 | $14,423 | $10,637 |
How to Negotiate Severance in Michigan
In Michigan, the standard federal WARN Act applies — 60 days notice for layoffs of 50+ employees at companies with 100+ workers.
- ✓ Ask for more weeks: Counter with 50% more than the initial offer
- ✓ Negotiate COBRA: Employer-paid health coverage for 6-12 months
- ✓ Get a written reference: Protect your future career prospects
- ✓ Review non-compete clauses: Negotiate restrictions before signing
- ✓ Consult a lawyer: Employment attorneys often negotiate 2-5x the original offer
Think Your Severance Is Too Low?
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Michigan Severance Pay FAQ
Is severance pay required in Michigan?▼
No, Michigan does not have a state law requiring employers to provide severance pay. However, the federal WARN Act may require 60 days notice or pay in lieu of notice for large layoffs.
How is severance taxed in Michigan?▼
Severance in Michigan is taxed at 26.3% combined — 22% federal supplemental rate plus 4.3% Michigan state income tax. On a $50,000 severance, you'd take home approximately $36,875.
What is the WARN Act in Michigan?▼
The federal WARN Act applies in Michigan, requiring employers with 100+ employees to give 60 days advance notice for mass layoffs of 50+ workers. Failure to provide proper notice can result in back pay for the notice period.
Can I collect unemployment and severance in Michigan?▼
This depends on how your severance is structured. Some Michigan workers can receive both simultaneously, while others may see a delay in unemployment benefits. If severance is paid as a lump sum, it's less likely to delay unemployment than if paid as continued salary. Contact Michigan's unemployment office for specific guidance.
Severance Pay in Nearby States
📋 Free Severance Negotiation Checklist
The exact steps employment lawyers use to negotiate higher severance. Used by 10,000+ employees.