After a long tenure

Ten, fifteen, twenty years in one place changes the math and the emotional weight of a separation. A few things are worth knowing.

Bigger severance, bigger tax bite

Most formulas are weeks-per-year-of-service, so a long tenure means a large payout — sometimes a whole year of pay. That's a big supplemental wage, and the flat 22% federal withholding plus FICA and state can take a substantial chunk up front. Model the take-home, not just the headline number.

Watch the caps

Many company policies cap severance — for example, "two weeks per year, up to 26 weeks." After a long tenure you may be at or over the cap, so extra years stop adding pay. Read the policy; our calculator lets you set a floor and cap.

Retirement and benefits

• 401(k) vesting. Long tenure usually means fully vested — the match is yours. You have no urgent rollover deadline.
• Pension or deferred comp. If you have either, get the payout and timing rules in writing; they can interact with severance.
• Unused PTO. Many states require payout of accrued vacation. Check your final pay.

Unemployment still applies

Years of service don't disqualify you — a layoff after twenty years is still a layoff. File. And give yourself room: a long chapter ending is a real loss, and moving fast on the paperwork doesn't mean you have to move fast on what's next.