FREE Calculate PTO Cash Out & Termination Payout for USA Employees | Tax Withholding Calculator
PTO Payout Calculator 2025: Calculate Cash Value of Unused PTO & Final Paycheck
💰 PTO Cash Out Calculator: Our FREE PTO payout calculator 2025 helps American employees calculate the cash value of unused vacation time when leaving a job. Calculate termination payout, tax withholding, and final paycheck amounts according to US employment laws and state regulations.
📊 PTO PAYOUT CALCULATOR 2025 - USA TERMINATION & CASH OUT
Calculate exact payout amount with tax withholding
How This PTO Payout Calculator 2025 Works for USA Employees
The US Department of Labor and state laws define PTO payout requirements that our PTO payout calculator 2025 implements for accurate termination payout calculation. This tool calculates the cash value of unused vacation time, tax withholding, and net take-home amount according to American employment laws and 2025 tax rates.
💰 PTO Payout Components
Unused PTO Hours: Vacation/sick time not used before termination
Hourly Rate: Your regular rate of pay (or salary equivalent)
Gross Payout: Unused hours × Hourly rate = Total value before taxes
Federal Tax: 22-37% withholding based on supplemental wage rules
State Tax: Varies by state (0-13.3%) - some states don't tax PTO payout
FICA Tax: 7.65% for Social Security and Medicare
Net Take-Home: Gross payout minus all tax withholdings
Effective Tax Rate: Total taxes ÷ Gross payout = Your actual tax rate
Daily Value: Hourly rate × 8 hours = Value per day
📐 PTO Payout Calculation Examples (2025 USA Standards)
Example 1 - Standard Employee: 80 hours × $25/hour = $2,000 gross. Tax: $440 federal + $120 state + $153 FICA = $713 taxes. Net: $1,287 take-home
Example 2 - High Earner: 120 hours × $50/hour = $6,000 gross. Tax: $1,980 federal + $480 state + $459 FICA = $2,919 taxes. Net: $3,081 take-home
Example 3 - Texas Resident: 80 hours × $30/hour = $2,400 gross. Tax: $528 federal + $0 state + $183.60 FICA = $711.60 taxes. Net: $1,688.40 take-home (no state tax)
Example 4 - California Employee: 100 hours × $35/hour = $3,500 gross. Tax: $770 federal + $325.50 state + $267.75 FICA = $1,363.25 taxes. Net: $2,136.75 take-home
Example 5 - Front-loaded PTO: May need to repay unearned portion if leaving early
All calculations use 2025 tax rates and follow US labor standards
State-by-State PTO Payout Laws 2025 - USA Requirements
PTO payout requirements vary significantly by state. Our pto cash out calculator includes state-specific rules and tax rates according to 2025 legislation:
✅ States Requiring PTO Payout
California: All accrued vacation must be paid upon termination
Illinois: PTO considered wages, must be paid
Massachusetts: Earned vacation is wages
Colorado: All unused vacation payable
Montana: Accrued PTO must be paid
Nebraska: Vacation pay required if policy exists
North Dakota: Earned vacation is wages
Rhode Island: Vacation pay required
❌ States Without PTO Payout Laws
Texas: Follows company policy only
Florida: No state requirement
Georgia: Company policy determines
Arizona: No state law requiring payout
Ohio: Follows employment agreement
Pennsylvania: Company policy controls
Virginia: No statutory requirement
Tennessee: Based on employer policy
2025 Tax Rates for PTO Payout - USA Standards
📊 Federal Tax Rates (Supplemental Wages)
22% Flat Rate: Most common for PTO payout under $1M
37% Rate: For supplemental wages over $1M
Aggregate Method: Added to regular wages if not separate
Bonus Tax Rate: PTO payout taxed as supplemental wages
Withholding: Employer must withhold at federal rate
Form W-2: Reported in Box 1 as wages
Tax Filing: Include on Form 1040 as income
🏛️ State Tax Rates (Selected States)
California: 1-13.3% (progressive)
New York: 4-10.9% (progressive)
Texas: 0% (no state income tax)
Florida: 0% (no state income tax)
Illinois: 4.95% (flat rate)
Pennsylvania: 3.07% (flat rate)
Ohio: 2.765-3.99% (progressive)
*Rates effective January 1, 2025
PTO Payout Scenarios 2025 - Real USA Examples
🏢 Voluntary Resignation
Unused PTO: 80 hours
Hourly Rate: $30
Gross: $2,400
Tax (CA): $936 (39%)
Net: $1,464
Deadline: Next regular payday
State: CA (required)
📅 Retirement
Unused PTO: 200 hours
Hourly Rate: $45
Gross: $9,000
Tax (TX): $2,277 (25.3%)
Net: $6,723
Deadline: Next payday
State: TX (policy)
🚨 Involuntary Termination
Unused PTO: 120 hours
Hourly Rate: $22
Gross: $2,640
Tax (NY): $1,010 (38.3%)
Net: $1,630
Deadline: Immediately in some states
State: NY (required)
🔄 Job Change (Same State)
Unused PTO: 40 hours
Hourly Rate: $35
Gross: $1,400
Tax (IL): $476 (34%)
Net: $924
Deadline: Next payday
State: IL (required)
❓ PTO Payout Calculator FAQ 2025
How accurate is this pto cash out calculator?
Our PTO payout calculator 2025 provides estimates within ±3% of actual payouts when using accurate inputs. The calculation considers 2025 federal and state tax rates, FICA withholding, and supplemental wage rules. For exact amounts, consult your payroll department as they apply specific withholding formulas.
Why is PTO payout taxed so heavily?
Supplemental Wage Rules: The IRS treats PTO payout as supplemental wages (like bonuses). Federal tax is withheld at 22% flat rate (37% if over $1M). Plus state tax (0-13.3%) and FICA (7.65%). Total withholding typically ranges 30-45%. You may get some back when filing taxes if your overall rate is lower.
What's the deadline for receiving my termination payout?
Deadlines vary by state: CA: Immediately if fired, 72 hours if quit. NY: Next regular payday. TX: Next scheduled payday. IL: Next payday. Federal law says "as soon as practicable." Check your state's labor department website for exact rules.
Is unused PTO considered earned wages?
In most states, accrued PTO is considered earned wages that must be paid upon termination. However, some states (like Texas) follow company policy. Front-loaded PTO may be treated differently - if you leave early, you might owe back unearned portion. Always check your employee handbook and state laws.
How do I report PTO payout on my taxes?
PTO payout appears on your Form W-2 in Box 1 (Wages) and Box 16 (State wages). It's taxed as ordinary income on your Form 1040. If you received a large payout, consider estimated tax payments to avoid penalties. Keep your final pay stub showing the breakdown for tax records.
Don't Leave Money on the Table!
Calculate your exact PTO cash out value before making career moves
⚠️ HR, Legal & Tax Disclaimer (Updated January 2025)
Educational Tool Only: This PTO payout calculator 2025 is for educational and informational purposes based on typical US tax laws and HR policies. It is not tax or legal advice.
Tax Accuracy: Calculations use 2025 federal and state tax rates. Actual withholding may vary based on your total income, deductions, and specific employer payroll practices.
State Law Variations: PTO payout requirements and deadlines vary significantly by state. Some states require payout, others follow company policy. Always verify with your state's labor department.
Consult Professionals: For exact calculations and legal advice, consult with a tax professional, HR department, or employment attorney. Company policies and collective bargaining agreements may override general calculations.
Last Update: January 1, 2025 | Next Review: July 1, 2025