PTO Payout Calculator
Estimate your payout for unused paid time off when you leave your job. We apply your state's rules and a 22% federal supplemental tax estimate.
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California treats earned vacation/PTO as wages. All accrued, unused vacation must be paid out upon termination regardless of separation type.
Statute: Cal. Labor Code §227.3
Your Results
80 hrs × $25.00/hr = $2,000.00
22% × $2,000.00 = $440.00
$2,000.00 − $440.00 = $1,560.00
How PTO Payout at Termination Works
When you leave a job, unused PTO may or may not be paid depending on your state and employer policy. This PTO payout calculator multiplies your unused hours by your hourly rate for a gross amount, then applies an approximate 22% federal tax (IRS treats PTO payout as supplemental wages). Your state may require payout (e.g., California, Illinois) or leave it to company policy; the results show your state's rule. Select your state in the calculator above to see the exact rule and a short legal summary for all 50 states and DC.
State PTO Payout Laws
Several states require employers to pay out earned, unused vacation at separation. Others don't; payout then depends on your employer's written policy. Select your state in the calculator to see the exact rule and a short legal summary. This tool is for estimates only and is not legal advice.
PTO Payout FAQ
Gross payout = unused PTO hours × your hourly rate. Employers typically withhold federal income tax at about 22% on PTO payout (supplemental wages), so your estimated net is gross minus that tax. Use the calculator above to enter your unused hours and rate and see the estimate for your state.
The IRS treats PTO payout as supplemental wages. Employers typically withhold federal income tax at a flat 22% rate on supplemental wages (up to $1 million per year). Your actual tax may vary based on your total income; this calculator gives an estimate only.
In states with mandatory PTO payout (e.g., California, Illinois, Massachusetts), employers must pay all earned, unused vacation/PTO when employment ends—whether you quit or are terminated. In other states, payout depends on your employer's written policy or is not required.
A common method is to divide your annual salary by 2,080 (40 hours × 52 weeks). Enter your annual salary in the calculator and it will compute the equivalent hourly rate for the payout estimate.
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