PTO Payout Calculator

PTO payout = unused PTO hours × your hourly rate. If you're salaried, divide your annual salary by 2,080 (standard full-time annual hours) to get an equivalent hourly rate first.

It depends entirely on your state and your employer's written policy. Some states (like California) treat earned, vested PTO as wages that must be paid out at termination, while others leave it up to the employer's policy — always check your specific state's law and your employer's handbook.

The IRS treats a PTO payout as supplemental wages, similar to a bonus — employers commonly withhold federal income tax on it at the flat 22% supplemental rate (37% above $1 million in supplemental wages in a year), on top of regular FICA taxes.

Usually not — most employer policies and state laws distinguish PTO/vacation time (which often must be paid out) from sick leave (which more often can be forfeited), though some employers combine everything into one 'PTO' bucket that would need to be paid out together. Check your specific plan's rules.