Illinois severance pay calculator.
Estimate your Illinois severance after federal, state, and FICA tax \u2014 pre-set with the Illinois rate.
Estimates only. PTO payout rights and tax withholding vary by state, employer policy, and individual circumstances. This is not legal, tax, or financial advice. Consult your state labor department or a qualified professional. See our methodology.
Severance pay in Illinois
Illinois does not require employers to offer severance \u2014 no US state does. When it is offered, the common formula is one to two weeks of pay per year of service. Because severance is a supplemental wage, your Illinois take-home reflects 22% federal withholding, an estimated 5.0% Illinois supplemental rate, and 7.65% FICA.
Illinois example: a $20,000 severance package has about $4,400 federal and $990 state tax withheld, plus FICA \u2014 roughly $13,080 net.
Final pay & your rights in Illinois
Severance is usually paid with or near your final paycheck. In Illinois, a final paycheck is generally due — if fired: At separation if possible, but no later than the next payday; if you quit: At separation if possible, but no later than the next payday — though severance itself follows your agreement’s timeline, not this deadline. Illinois’s statute of limitations for unpaid-wage claims is 3–10 years (reference: Illinois Wage Payment & Collection Act); unpaid wages are pursued through the Illinois Department of Labor. If your state also requires a Illinois PTO payout, that is separate from and in addition to any severance — estimate it with the free PTO payout calculator.
Severance & unemployment in Illinois
A one-time lump sum often does not reduce Illinois unemployment benefits, while salary continuation can delay or reduce them for the weeks it covers. Report severance when you file your claim. See the main severance guide for how the math and taxes work.
Frequently asked questions
How much is severance taxed in Illinois?
Severance is a supplemental wage: 22% flat federal withholding, an estimated 5.0% Illinois supplemental rate, and 7.65% FICA. On a $20,000 package in Illinois, that leaves roughly $13,080 net.
Is severance pay required in Illinois?
No. Illinois does not require private employers to pay severance — no US state does. It is owed only when promised in a policy, contract, or separation agreement. The federal WARN Act (and some state layoff-notice laws) can require notice or pay for large mass layoffs.
Does severance affect unemployment in Illinois?
It can. How Illinois treats severance depends on whether it is a one-time lump sum or salary continuation, and the week it covers. Report any severance when you file your Illinois unemployment claim and let the state determine the effect.
When must my final paycheck be paid in Illinois?
Final-pay timing in Illinois is set by state law; the statute of limitations for unpaid-wage claims is 3–10 years. Reference: Illinois Wage Payment & Collection Act. Severance paid with your final check follows your agreement, not a state deadline.