Final Paycheck Calculator

Quitting or laid off? Estimate exactly how much you are owed in your final check, including prorated days, unused PTO payout, and severance—plus learn exactly when your state requires your employer to pay you.

Regular Pay

In final period

PTO & Severance

Net Final Pay

Estimated payout after taxes

Final Gross Earnings

Taxes & Deductions Severance and PTO are often taxed as supplemental income (22% flat federal rate).

Introduction to Final Paychecks

A final paycheck is the last payment an employer issues to an employee who has resigned, been laid off, or been fired. It must include wages for all days worked during the final pay period, and often includes payouts for accrued Paid Time Off (PTO) and, in some cases, severance pay.

Knowing what you are entitled to—and exactly when you are entitled to receive it—is crucial during a job transition. The laws governing final paychecks vary wildly depending on which state you work in.

State Laws on Final Paycheck Timing

Under the federal Fair Labor Standards Act (FLSA), employers are generally only required to pay a final paycheck on the next regular payday. However, many states have enacted stricter timelines to ensure workers are not left in financial limbo.

Immediate Final Paycheck States

In some states, if you are terminated (fired or laid off), the employer must hand you your final paycheck immediately on your last day of work.

Example: In California, if you are fired, your employer must provide your final check at the exact time of termination. If you quit and give at least 72 hours’ notice, you must also be paid immediately on your last day.

Next Payday Final Paycheck States

Many states, including Florida, New York, and Texas, default to the “next regular payday” rule for employees who quit, though the rules may tighten if the employee is fired.

Example: In Texas, if you quit, your final check is due on the next scheduled payday. If you are laid off, the employer has six calendar days to issue the final payment. In New York, the check is always due on the regular payday, regardless of why you left.

Extended Timelines & Penalties

If an employer fails to meet these state-mandated deadlines, they can be subjected to “waiting time penalties.” For instance, in California, for every day a final check is late, the employer owes the employee a full day’s wages, up to a maximum of 30 days.

PTO and Vacation Payout Requirements

Are you legally entitled to be paid for the vacation days you never took? It entirely depends on state law and company policy.

• Mandatory Payout States: In states like California, Illinois, and Massachusetts, accrued vacation time is considered earned wages. The law strictly dictates that you MUST be paid out for all unused vacation hours in your final check. Employers cannot implement “use-it-or-lose-it” policies to dodge this.
• Policy-Dependent States: In states like Texas, New York, and Florida, the law says the employer must follow their own written policy. If the employee handbook says “PTO is paid out upon separation,” they must pay it. If the handbook explicitly states “Unused PTO is forfeited upon termination,” you get nothing.
• Sick Leave vs. Vacation: Note that standard accrued sick leave is rarely mandated to be paid out upon separation, even in highly regulated states like California, unless the company bundles sick and vacation time into one unified “PTO” bucket.

Severance Taxes and Deductions

How Severance is Taxed

Severance pay is considered ordinary income by the IRS. It is fully subject to federal income tax, state income tax, Social Security, and Medicare. Because it is often paid as a lump sum, it is treated as “supplemental wages.” Employers typically withhold federal income tax on severance at a flat 22% rate. While this large deduction can be frustrating, if 22% is higher than your actual annual tax bracket dictates, you will receive the excess back when you file your tax return.

Permissible vs. Impermissible Deductions

Employers often try to deduct money from a final check for unreturned equipment. The laws governing this are strict:

• Permissible: Standard taxes, court-ordered garnishments (like child support), and specific deductions you previously authorized in writing (like health insurance premiums or 401(k) contributions).
• Impermissible: Under federal law, an employer cannot deduct the cost of uniforms, tools, or damage/breakage to company property if that deduction brings your pay below the federal minimum wage. In many states (like California), employers cannot deduct for lost equipment or mistakes at all unless they can prove gross negligence or intentional theft.

What To Do If Your Employer Withholds Your Pay

If your employer refuses to issue your final paycheck, delays it beyond state limits, or illegally deducts funds:

1. Document Everything: Save copies of your pay stubs, your termination letter, and any email correspondence regarding your final pay.
2. Request in Writing: Send a formal email or certified letter to HR demanding immediate payment of owed wages, citing your state’s final pay laws.
3. File a Wage Claim: Contact your state’s labor department or the federal Department of Labor’s Wage and Hour Division. Filing a claim is free, and the state will investigate and compel the employer to pay.
4. Seek Legal Counsel: If the owed amount is substantial, or if the employer owes waiting time penalties, consult an employment attorney. Many take cases on contingency.

Frequently Asked Questions

Clear answers to the most common questions regarding final paychecks.

When must my employer issue my final paycheck and what should it include?

Timing requirements depend entirely on state law. In California, if you are fired, you must be paid immediately on your last day. If you work in Texas or New York, the employer generally has until the next regularly scheduled payday to issue the check. Your final paycheck must include your regular pay for all days worked in the final pay period, plus any required PTO payout or promised severance.

Am I entitled to payment for unused PTO and vacation time in my final paycheck?

In states like California, Illinois, and Massachusetts, accrued vacation time is treated as earned wages and MUST be paid out upon separation, regardless of company policy. In most other states, employers are only required to pay out PTO if their official employee handbook or a written contract explicitly states that they will do so.

How is severance taxed and what taxes will be withheld from my severance?

Severance pay is considered ordinary income and is fully taxable. Because it is a lump-sum payment, employers usually classify it as "supplemental wages" and withhold federal income tax at a flat rate of 22%. It is also subject to standard FICA taxes (6.2% for Social Security and 1.45% for Medicare) and state income taxes.

What deductions can and cannot be taken from my final paycheck?

Employers can legally deduct standard taxes, court-ordered garnishments, and pre-authorized contributions (like health premiums). However, under federal law, they cannot deduct for the cost of uniforms, unreturned laptops, or accidental damage to company property if that deduction causes your final pay to drop below minimum wage. Many states outright ban these deductions unless the employer can prove intentional theft or gross negligence.

What should I do if my employer withholds or delays my final paycheck?

If your check is delayed, document your attempts to contact HR in writing. If the employer refuses to pay, you should file a free wage claim with your state's labor department or the federal Department of Labor. In states with strict timing laws, your employer may owe you a "waiting time penalty," requiring them to pay you your average daily wage for every day the check is late.