The taxpayer may leave a job and get severance pay. If Then Severancy pay is attributable to pay for a period of time. The exempt amount is based on that time period. Severance pay is not attributable to pay for a period of time. The amount exempt for one pay period is used.
Severance pay is one week's pay for each year on the job.
A taxpayer on the job for ten years gets ten weeks' severance pay. The taxpayer gets a paycheck every two weeks for ten weeks. Two weeks' exempt amount is subtracted from each check, just like the person was still working for ten weeks. The same facts as above, but the taxpayer gets the amount in one payment. The payment is attributable to ten weeks' pay.