PTO Payout Calculator

It depends on your state. In California, Colorado, Illinois, Louisiana, Maine, Massachusetts, Montana, Nebraska, North Dakota, Rhode Island, and Washington D.C., accrued unused vacation is treated as earned wages and MUST be paid out on your final paycheck. In states like Texas, Florida, Georgia, and Ohio, there is no state requirement — payout depends entirely on your employer's written policy or contract.

PTO payout = accrued unused hours × your final hourly rate. Salaried workers convert their annual salary to an hourly rate (annual salary ÷ 2,080). If you accrued PTO at multiple pay rates, most states require you to be paid at your most recent (highest) rate of pay at separation.

PTO payout is taxable income, treated as a 'supplemental wage.' The IRS default withholding for supplemental wages is a flat 22% federal (for amounts under $1 million per year), plus 7.65% FICA (Social Security and Medicare), plus any state and local income tax. Your actual tax liability at year-end is based on your total income and W-4.

In California, Colorado, Montana, and Nebraska, 'use-it-or-lose-it' vacation policies are illegal — once you earn vacation, it cannot be forfeited. Most other states allow reasonable annual caps on accrual, provided the policy is clearly disclosed to employees in writing before the caps take effect.

Deadlines follow the state's final paycheck law. California requires the final check (including PTO) immediately at termination or within 72 hours if you quit without notice — with waiting-time penalties of one day's wages per day of delay, up to 30 days. Massachusetts requires payment on the day of discharge. Other states typically require payment by the next regular payday.

Almost never. Even in states that require vacation/PTO payout, paid sick leave is usually excluded because it is not considered a 'guaranteed' benefit — it's contingent on being sick. If your employer combines all leave into a single PTO bank, then the entire bank is generally treated as vacation and must be paid out where state law requires.

Yes — if the state requires payout, it applies equally to full-time, part-time, and hourly employees. The only difference is that accrual is typically prorated based on hours worked.

In states where PTO payout is legally required, refusing to pay is a wage-and-hour violation. You can file a wage claim with your state labor department (e.g., California DLSE, Illinois IDOL, Massachusetts AGO). Many states also allow you to recover attorney fees, interest, and waiting-time penalties.