PTO Payout Calculator
Hourly rate computed from salary ÷ 2,080 hr/yr (standard FTE). Override below if your final rate differs.
80 hrs = 10 days. SHRM avg US worker accrues 12–15 PTO days/yr.
Leave 0 to use salary ÷ 2,080.
8 states require payout: CA, CO, IL, LA, MA, MT, NE, ND.
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How to use
- 1 Enter annual salary and accrued PTO hours at separation (most US employers track in hours; 8 hours = 1 day for FTE).
- 2 Select your state — calculator applies the state-specific mandate. Use-it-or-lose-it is invalid in CA/CO/MT/NE.
- 3 Choose policy type your employer uses: separation payout (most common), use-it-or-lose-it (banned in 4 states), or rollover indefinitely.
- 4 Optional: override final hourly rate if you got a recent raise. The hourly rate at SEPARATION applies, not your average.
- 5 Click Calculate to see hourly rate, accrued PTO in days, gross payout, federal supplemental tax, FICA, state tax estimate, and net take-home.
About PTO Payout Calculator
FAQ
Q Does my employer have to pay out unused PTO?
Federally NO. State-level: 8 states REQUIRE it (CA, CO, IL, LA, MA, MT, NE, ND). Other states leave it to employer policy. California treats vacation as earned wages — must be paid at final hourly rate at separation, regardless of policy.
Q Is use-it-or-lose-it PTO legal?
NOT in California, Colorado, Montana, or Nebraska. These 4 states BAN forfeiture of accrued vacation entirely. Caps are allowed (employer can stop accrual at a ceiling), but existing hours must roll over. Other states allow use-it-or-lose-it during employment.
Q How is PTO payout taxed?
As W-2 wages — full federal income tax (22% supplemental rate per Pub 15-T, 37% above $1M), plus FICA 7.65% (SS 6.2% to $184,500 + Medicare 1.45% no cap), plus state income tax. Net retention typically 60-75% of gross.
Q How much PTO is one day worth?
8 hours at your hourly rate. Hourly rate from salary: divide annual salary by 2,080 (full-time hours/year). At $100K salary: $48.08/hr × 8 = $385/day. After 22% federal + 7.65% FICA + 5% state = ~$252 net per day.
Q Can my employer cap my PTO accrual?
Yes — even in mandatory payout states. CA explicitly allows reasonable accrual caps (e.g., 240 hours cap). When you hit the cap, you stop earning more PTO until you use some down. You don't LOSE existing hours; just don't accrue beyond the cap.
Q What's the difference between PTO and vacation?
Same legal treatment in mandatory-payout states (CA, CO, etc. all treat any accrued time-off as wages owed). Difference is internal: VACATION is typically planned time-off; PTO combines vacation + sick + personal in one bucket. Sick-only PTO often gets different treatment in some states (CA paid sick leave is separate).
Q Can I negotiate PTO payout in non-mandatory states?
YES — make it part of your separation agreement. Common: convert unused PTO to severance addendum. Employer benefits from clean liability close-out. Especially negotiable if you have leverage (legal claims, key role, replacement difficulty).
Q When do I receive my PTO payout?
Varies by state. Final paycheck timing rules: California (immediately if termination, 72 hrs if quit), Colorado (next regular payday or 6 hrs at separation), most other states (next regular payday). Your PTO payout is included in this final paycheck.
Official resources
CA DLSE — Vacation Pay Law
California Division of Labor Standards Enforcement official FAQ on Labor Code §227.3 vacation pay rules.
CO DOL — Wage Act PTO Rules
Colorado Department of Labor official guide to mandatory PTO payout under the Wage Act.
IRS Publication 15-T — Supplemental Wage Withholding
IRS Pub 15-T 2026 covering 22% supplemental rate for PTO/vacation payouts.
DOL — Wage and Hour Division
US Department of Labor Wage and Hour Division — federal context (no PTO mandate; defers to state law).