Payment terms
Clear severance amount or calculation method, currency, gross/net statement, and whether benefits continuation is included.
A well-drafted Severance Payment Form clarifies obligations, reduces dispute risk, and documents consideration for any release of claims under state and federal law. It also creates a record for payroll and tax compliance, and supports consistent administration across separations.
Typical parties involved before and after completion.
Roles vary by company size and the complexity of the severance arrangement; smaller employers often combine HR and legal responsibilities.
Clear severance amount or calculation method, currency, gross/net statement, and whether benefits continuation is included.
List conditions the employee must meet to receive payments (signature, return of property, confidentiality obligations).
Explicit general release of claims, scope and survival clauses, and any carve-outs for statutory rights.
Specify withholding method, issuer of wage statements, and responsibility for payroll taxes or reporting.
If used, set precise limits, duration, and remedies for breaches consistent with state law.
Signature blocks with printed names, titles where applicable, dates, and notation if notarization or witness required.
| Field | Configuration |
|---|---|
| Signature Order | Sequential or parallel based on approval needs |
| Authentication | Email+SMS or KBA for higher-risk cases |
| Audit Trail | Record IP, timestamp, and action log |
| Retention | Automated archival with access controls |
Use platforms that support required eSignature standards and your integration needs.
Ensure the chosen system provides a tamper-evident audit trail, role-based access, and export options compatible with payroll and HR systems.
Follow the date listed in the Payment Schedule field (MM/DD/YYYY)
Report wages on applicable year forms; 1099 or W-2 deadlines apply as required
If state or statute requires a rescission period for releases, track the countdown from employee acceptance
Submit payroll entries per your provider’s cutoff to avoid processing delays
Retain executed records according to retention timelines below
| signNow | DocuSign | Adobe Sign | PandaDoc | HelloSign | |
|---|---|---|---|---|---|
| Starting Price | $8/user/mo | $15/user/mo | $14/user/mo | $19/user/mo | $15/user/mo |
| Free Trial | 7-day free trial (no credit card) | Varies by plan | Varies by plan | Free trial available | Free limited plan available |
| Bulk Send | Yes (plan-dependent) | Yes | Yes | Yes | Yes |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | No | No |
| Envelope Cap | No cap | 100 envelopes/user/year | Varies | Varies | Varies |
Optica used a template to issue uniform offers to departing staff
A healthcare provider added PHI handling provisions and a BAA to the severance workflow