Severance in Michigan
Michiganseverance & layoff calculator
State law shapes how much of your severance you keep, when you can collect unemployment, and whether your employer owed you advance notice. Here’s what applies in Michigan.
- Top marginal tax
- 4.25%
- WARN Act
- Federal WARN only
- Unemployment max
- $530 / week
- PTO payout
- Depends on employer policy
- Right to work
- Yes
- Notes for Michigan
- Worth knowing
Severance is taxed at your state's top marginal rate when it pushes you into that bracket.
Michigan doesn't have a state mini-WARN, so federal rules apply: 100+ employees, 60 days' notice.
Up to 26 weeks. Unemployment insurance runs concurrently — you can collect benefits even while severance is paid out.
No statutory requirement to pay out unused PTO — check your employee handbook or offer letter for any contractual obligation.
Right-to-work means union dues can't be a condition of employment. It does not weaken individual severance rights.
Right-to-work since 2012. UI weekly max raised to $530 effective 2025.
Sources: state department of labor, state department of revenue, and the U.S. Department of Labor ETA. Last verified: 2026-04.
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Estimates based on public data and industry benchmarks. Not legal advice.