Severance Pay in Madison, Wisconsin | 2026 Calculator & Guide

Q: How much severance pay is typical in Madison?

In Madison, Wisconsin, typical severance ranges from 1-3 weeks of pay per year of service. Based on the local median salary of $62,000, a worker with 5 years of tenure can expect between $5,962 and $17,885 in gross severance. However, actual amounts vary significantly by employer, industry, and seniority level.

Q: How is severance taxed in Madison, Wisconsin?

Severance pay in Madison is taxed at a combined rate of 27.3%: the 22% federal supplemental wage rate plus 5.3% Wisconsin state income tax. On a $50,000 severance package, you would take home approximately $36,350 after withholding.

Q: Where can I find a severance lawyer in Madison?

A local attorney familiar with Wisconsin employment law can review your severance agreement, identify additional leverage, and negotiate better terms. Many employment attorneys in Madison offer free initial consultations, so consider consulting a licensed employment attorney in your state.

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Wisconsin State Law Quick-Reference

No

Mandatory Severance

60 days

WARN Act Notice

27.3%

Est. Combined Withholding

Federal WARN Act requires 60 days notice for layoffs of 50+ employees at companies with 100+ employees. The combined tax rate includes the 22% federal supplemental wage rate and 5.3% Wisconsin state withholding (estimate).

Major Employers in Madison

Google (Alphabet)

Company-confirmed only for the Jan 2023 layoff: 16 weeks base + 2 weeks/year of service, >=16 weeks accelerated GSU vesting, 6 months healthcare, 60-day paid notice. The 2025-26 voluntary buyouts have no Google-published figure (the reported ~14 wks + 1 wk/yr is from a leaked memo, not confirmed).

Amazon

Employee-reported (never company-confirmed): ~1 week per 6 months of service (≈2 wks/yr), reported floor ~4 weeks, cap ~20 weeks, paid after a ~90-day paid notice window; warehouse tiers reported lower

Microsoft

No company-published formula. Employee-reported/leaked: up to ~39 weeks base (levels <=64: 1 week per 6 months of service; 65-67: 2 weeks per 6 months), 60-day minimum notice, ~6 months healthcare + 12 months COBRA. A separate April 2026 voluntary programme was reported at ~12 weeks + 2 weeks/year (cap 52). All reported, not confirmed.

Top Industries in Madison

Salary-Adjusted Severance Examples for Madison

Based on the Madison median salary of $62,000 ($1,192/week), with 27.3% combined tax withholding

Tenure	Low (1 wk/yr)	Typical (2 wk/yr)	High (3 wk/yr)
2 years	$2,385 $1,734 after tax	$4,769 $3,467 after tax	$7,154 $5,201 after tax
5 years	$5,962 $4,334 after tax	$11,923 $8,668 after tax	$17,885 $13,002 after tax
10 years	$11,923 $8,668 after tax	$23,846 $17,336 after tax	$35,769 $26,004 after tax

Cost of Living Context

104

Cost of Living Index
(National average = 100)

Your $11,923 typical severance (5 years tenure) goes 4% less in Madison compared to the national average. The slightly higher cost of living means budgeting carefully during your transition is important.

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When a calculator estimate is not enough

Use your estimate as a starting point, not a final answer. Releases of claims, stock equity, short deadlines, and layoffs involving protected rights all need closer review.

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Madison Severance Pay FAQ

How much severance pay is typical in Madison?▼

In Madison, Wisconsin, typical severance ranges from 1-3 weeks of pay per year of service. Based on the local median salary of $62,000, a worker with 5 years of tenure can expect between $5,962 and $17,885 in gross severance. However, actual amounts vary significantly by employer, industry, and seniority level.

How is severance taxed in Madison, Wisconsin?▼

Severance pay in Madison is taxed at a combined rate of 27.3%: the 22% federal supplemental wage rate plus 5.3% Wisconsin state income tax. On a $50,000 severance package, you would take home approximately $36,350 after withholding.

Where can I find a severance lawyer in Madison?▼

A local attorney familiar with Wisconsin employment law can review your severance agreement, identify additional leverage, and negotiate better terms. Many employment attorneys in Madison offer free initial consultations, so consider consulting a licensed employment attorney in your state.