Oregon Severance Pay Calculator
Estimate your Oregon severance after federal, state, and FICA tax — pre-set with the Oregon rate.
Weekly pay: $1,250.00
$5,000.00
Gross severance
Est. taxes: ~$1,977.50 (39.6%)
$3,022.50
Estimated net take-home
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 Oregon
Oregon employers are not legally required to offer severance pay unless contractually promised in an employment agreement or collective bargaining agreement. In large-scale layoffs, employers must comply with federal WARN Act requirements. Under Oregon Employment Department rules, severance pay (lump sum or salary continuation) can disqualify or reduce weekly unemployment benefits for the weeks it is designated to cover; however, lump-sum severance unrelated to the period after termination generally does not affect benefits.
Official Oregon Wage Claim Resources
If you are denied your legal severance payout or have wage disputes under state labor codes, you can contact the official agency below:
- Wage Agency: Oregon Bureau of Labor and Industries (BOLI)
- Phone Support: (971) 673-0761
- Official Website: https://www.oregon.gov/boli/
Oregon example: a $20,000 severance package has about $4,400 federal and $1,980 state tax withheld, plus FICA \u2014 roughly $12,090 net.
Final pay & your rights in Oregon
Severance is usually paid with or near your final paycheck. In Oregon, a final paycheck is generally due — if fired: End of the first business day after termination; if you quit: Immediately if you gave 48 hours’ notice; otherwise within 5 days or the next payday, whichever is first — though severance itself follows your agreement’s timeline, not this deadline. Oregon’s statute of limitations for unpaid-wage claims is 6 years (reference: Or. Rev. Stat. § 652.140); unpaid wages are pursued through the Oregon Bureau of Labor and Industries (BOLI). If your state also requires a Oregon PTO payout, that is separate from and in addition to any severance — estimate it with the free PTO payout calculator.
Severance & unemployment in Oregon
A one-time lump sum often does not reduce Oregon 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 Oregon? +
Severance is a supplemental wage: 22% flat federal withholding, an estimated 9.9% Oregon supplemental rate, and 7.65% FICA. On a $20,000 package in Oregon, that leaves roughly $12,090 net.
Is severance pay required in Oregon? +
No. Oregon 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 Oregon? +
It can. How Oregon 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 Oregon unemployment claim and let the state determine the effect.
When must my final paycheck be paid in Oregon? +
Final-pay timing in Oregon is set by state law; the statute of limitations for unpaid-wage claims is 6 years. Reference: Or. Rev. Stat. § 652.140. Severance paid with your final check follows your agreement, not a state deadline.