Work out what your unused paid time off is worth. Enter your pay rate and how many PTO hours you have left. The calculator shows your gross payout, your estimated tax, and what you actually take home.
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Most employers pay 100 percent. Some pay a reduced rate on unused time. Check your handbook.
The IRS supplemental wage rate is 22 percent for payouts under $1 million. Your state may withhold on top.
| PTO hours being paid | 0 |
| Hourly rate used | $0.00 |
| Gross payout before tax | $0.00 |
| Estimated tax withheld | $0.00 |
| Estimated net payout | $0.00 |
| Equal to work days | 0 |
This is an estimate. Your employer’s payroll system produces the final figure. Payout rules depend on your state and your company policy.
How to calculate your PTO payout
The formula is simple:
Unused PTO hours x your hourly rate = your gross payout
If you have 80 unused hours and earn $25 an hour, your gross payout is $2,000.
Two things change that number.
First, your employer may pay out at less than 100 percent. Some companies pay full value. Others pay a reduced rate on time you did not use. Your handbook says which.
Second, tax comes out. A PTO payout counts as wages, so income tax and payroll tax apply. Most employers withhold at the IRS supplemental wage rate of 22 percent, and your state may take more on top.
So the fuller version looks like this:(PTO hours x hourly rate x payout rate) minus tax = your take home
If you are paid a salary
Salaried workers need an hourly rate first. Divide your annual salary by the hours you work in a year.
Annual salary / (weekly hours x 52) = hourly rate
Someone on $52,000 working 40 hours a week earns $25 an hour. That is the rate their payout uses.
Switch the calculator to salary mode and it does this step for you.
If your balance is in days, not hours
Some employers track PTO in days. Payroll pays in hours.
Multiply your days by the length of your normal workday.
PTO days x hours per workday = PTO hours
Ten days on an 8 hour schedule is 80 hours. Ten days on a 7.5 hour schedule is 75 hours. That half hour difference is worth $125 to someone earning $25 an hour, so use your real shift length.
Does your employer have to pay out unused PTO?
It depends on your state.
Federal law does not require paid vacation at all, and it does not require a payout when you leave. The rules come from state law and your company policy.
States fall into three groups.
Payout required
Some states treat earned vacation as wages you already worked for. Your employer must pay it when you leave, and a policy saying otherwise does not override the law. California, Colorado, Montana, and Nebraska work this way.
Payout follows your policy
Most states let the employer decide. If the handbook promises a payout, the employer has to honour it. If the handbook says unused time is forfeited, it usually is.
Use it or lose it allowed
Some states let employers wipe unused balances at year end, as long as the policy is written and employees were told.
Sick leave is usually different. Most states that require paid sick leave do not require it to be paid out when you leave.
Check your handbook first. If it is unclear, ask HR to confirm in writing before you resign.
How PTO payouts get taxed
Your payout is wages, not a gift or a bonus in the tax sense. The same taxes apply.
Federal income tax
Employers usually withhold at the flat supplemental rate of 22 percent for amounts under $1 million. Some instead add the payout to your final paycheck and withhold at your normal rate.
Social Security and Medicare
These come out at 7.65 percent combined, unless you already hit the Social Security wage cap for the year.
State and local tax
Depends where you work. Nine states have no income tax, so people there keep more.
Withholding is not your final tax bill. If too much came out, you get it back when you file. If too little came out, you owe the difference.
When your payout arrives
Most states set a deadline for final pay, and your PTO payout normally goes into that final paycheck.
Deadlines vary. Some states require payment on your last day if you were fired. Others allow until the next scheduled payday. A few give a set number of days.
If your final check is late or the payout is missing, contact your employer's payroll team first. Most cases are an error, not a refusal. If that goes nowhere, your state labor department handles wage claims.
Frequently asked questions
How do I calculate PTO payout?
Multiply your unused PTO hours by your hourly rate. If you have 80 hours and earn $25 an hour, your gross payout is $2,000. Subtract tax withholding to get your take home amount.
How much tax comes out of a PTO payout?
Most employers withhold 22 percent for federal income tax, which is the IRS supplemental wage rate for payouts under $1 million. Social Security and Medicare add 7.65 percent. State tax depends where you work, so total withholding often lands between 25 and 40 percent.
Does my employer have to pay out my unused PTO?
It depends on your state and your company policy. States including California, Colorado, Montana, and Nebraska treat earned vacation as wages that must be paid out. Most other states leave it to the employer's written policy.
Is PTO paid out at my full hourly rate?
Usually yes, but not always. Some employers pay a reduced rate on unused time, and some cap how many hours they will pay. Your handbook sets the rate. Use the payout rate field in the calculator to match your policy.
Can I convert PTO days into hours?
Multiply your days by the hours in your normal workday. Ten days on an 8 hour schedule equals 80 hours. Use your actual shift length, not a standard 8, or your figure will be off.
Do I get paid for unused sick leave?
Usually not. Most states that require paid sick leave do not require a payout when you leave. Some employers pay it voluntarily. Check your handbook.
How is PTO payout calculated for salaried employees?
Convert your salary to an hourly rate first. Divide your annual salary by your weekly hours multiplied by 52. Then multiply that rate by your unused PTO hours.
When will I receive my PTO payout?
It normally arrives in your final paycheck. Each state sets its own deadline for final pay, ranging from your last day to the next scheduled payday.
Related calculators
- PTO Accrual Calculator, at /pto-accrual-calculator/, works out how much time off you earn each pay period.
- Vacation Accrual Calculator, at /vacation-accrual-calculator/, tracks vacation days earned per period or per hour worked.
- PTO Hours to Days Calculator, at /pto-hours-to-days-calculator/, converts a balance in hours into working days.
Note
This calculator gives an estimate for information only. It is not legal, tax, or HR advice. Your employer's payroll system produces the official figure, and payout rules depend on your state and your company policy. See our full disclaimer at disclaimer page.