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Comparison of Severance Pay Calculations

User's Excel Calculation vs. Calculator Implementation

After analyzing your Excel worksheet, I've identified several key differences between your manual calculations and how the calculator is computing severance pay:

1. Basic Calculation Approach

Your Excel Calculation:

  • Yearly Salary: $230,000
  • Years of Service: 14 years
  • Months leftover: 7 months
  • Service above 10 years: 4 years (doubled to 8)
  • Quarters in last year: 2 quarters
  • Adjusted years of service: 19 years
  • Basic Severance Pay: $83,756
  • Age Adjustment Factor: 2.65
  • Adjusted Severance Pay: $221,953

Calculator Implementation:

  • The calculator uses a different approach:
    • First 10 years: Weekly salary × 10
    • Years beyond 10: Weekly salary × 2 × (years beyond 10)
    • Partial year: 25% of applicable weekly amount for each full quarter
    • Age adjustment: 2.5% for each full quarter over age 40

2. Specific Discrepancies

a) Weekly Rate Calculation

  • Your calculation: $4,408.24 (appears to be annual salary ÷ 52.14)
  • Calculator: $4,423.08 (annual salary ÷ 52)

b) Service Year Calculation

  • Your calculation: Treats 14 years, 7 months as 19 adjusted years of service
  • Calculator: Treats 14 years, 7 months as 14.58 years, with separate calculations for full years and quarters

c) Age Adjustment Factor

  • Your calculation: Uses a factor of 2.65 (from a lookup table)
  • Calculator: Calculates 2.5% for each full quarter over age 40

d) Final Calculation Method

  • Your calculation: Multiplies basic severance by age adjustment factor
  • Calculator: Adds age adjustment amount to basic severance

3. Key Formulas Comparison

Basic Severance Pay:

  • Your formula appears to use a different method to calculate the basic severance
  • Calculator: For 14 years, 7 months at $230,000:
    • First 10 years: $44,230.77
    • Additional 4 years: $35,384.62
    • 2 quarters: $4,423.08
    • Total basic: $84,038.47

Age Adjustment:

  • Your calculation: Basic × 2.65 = $221,953
  • Calculator: Basic + (Basic × 0.025 × quarters over 40)

4. Capping Mechanism

  • Your calculation: Shows a maximum amount of $229,228.56 but doesn't apply it
  • Calculator: Caps total severance at one year's salary ($230,000)

Conclusion

The primary reason for the discrepancy appears to be in how the age adjustment is applied. Your Excel calculation multiplies the basic severance by a factor of 2.65, resulting in a much larger final amount. The calculator adds an age adjustment amount to the basic severance, which results in a smaller total.

To align the calculator with your Excel calculation, the JavaScript code would need to be modified to:

  1. Use the multiplication approach for age adjustment rather than addition
  2. Use the specific age adjustment factors from your lookup table
  3. Adjust how partial years are calculated in the basic severance amount

These changes would be in the calculateOptions() function in the enhanced-script.js file, specifically in the age adjustment calculation section.