How do I calculate PTO payout at termination?

PTO payout calculation is straightforward: **Basic Formula:** Unused PTO Hours × Current Hourly Rate = Payout Amount **For Salaried Employees:** Convert salary to hourly: Annual Salary ÷ 2,080 hours **Example Calculation:** - Annual salary: $52,000 - Hourly rate: $52,000 ÷ 2,080 = $25/hour - Unused PTO: 80 hours - Payout: 80 × $25 = $2,000 **Important Considerations:** 1. **Which rate to use:** Generally current rate at termination, not when PTO was earned 2. **What to include:** - Accrued, unused vacation/PTO: Yes - Unused sick leave: Usually no (check state law) - Floating holidays: Depends on policy 3. **Deductions:** - Front-loaded PTO used but not earned may be deductible - Check state law on negative balance recovery 4. **Timing:** - Many states require payout with final paycheck - Some allow next regular pay period **State Requirements Vary:** California, Colorado, Massachusetts, Montana, and Nebraska require vacation payout. Other states follow company policy.