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🧾 Final Paycheck Calculator

Estimate what your last paycheck should be after you quit, retire or are laid off. This calculator adds unpaid wages, unused PTO payout, commissions and bonuses owed, applies the correct FICA and supplemental withholding, and accounts for an outstanding 401(k) loan offset — the four pieces that decide whether your final check is bigger or smaller than you expect.

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Termination details — these change which deductions are legal on a final paycheck.

Employers may offset an outstanding 401(k) loan balance against the final paycheck once you separate. They may not deduct for tools, uniforms, or breakage in most states.

Gross Final Pay
$4,974.62
Wages + PTO payout + bonus owed
PTO Payout
$2,090.00
Unused hours × payout rate
FICA Withheld
$380.56
6.2% Social Security + 1.45% Medicare
Federal Withholding
$1,094.42
Supplemental rate method
401(k) Loan Offset
$0.00
Repaid from final wages at separation
Net Final Paycheck
$3,499.64
What lands in your account
Step-by-Step Breakdown
  1. Enter your unpaid wages, unused PTO, and any bonus owed, then press Calculate.

🚪 Example 1: Quit in California With 76 Hours of Unused PTO

Situation: Salary of $72,000 ($34.62/hr), quitting mid-period with 2 weeks of accrued vacation unused. California treats accrued vacation as earned wages that must be paid out at separation.

Calculation: Unpaid wages $2,884.62 + PTO 76 hrs × $27.50 = $2,090.00. Gross $4,974.62. FICA $380.56, federal withholding (22% supplemental) $1,094.42.

Gross: $4,974.62 | FICA: $380.56 | Federal: $1,094.42 | Net: $3,499.64

💼 Example 2: Laid Off With an Outstanding 401(k) Loan

Situation: You separate owing $6,000 on a 401(k) loan. The plan must offset the balance within the plan's correction window or the unpaid amount is treated as a taxable distribution plus a 10% early-withdrawal penalty if you are under 59½.

Calculation: Gross final pay $6,974.62 taken down by the $6,000 loan offset. Only $974.62 remains subject to FICA and withholding, which is why the net check is unexpectedly small.

Gross: $6,974.62 | Loan offset: $6,000.00 | Net: roughly $600–$900

📉 Example 3: No PTO Payout in a State Without a Payout Duty

Situation: You resign in Texas, which follows the employer's written policy. Your handbook states accrued vacation is forfeited on resignation, so the unused 76 hours pay nothing — but the wages you actually worked are still due by the next regular payday.

Calculation: PTO payout = $0. Gross = unpaid wages + any bonus owed. Only $2,884.62 gross, FICA $220.66, federal withholding $634.62.

Gross: $2,884.62 | PTO: $0.00 | Net: $2,029.34
Step-by-Step Calculation
  1. Add unpaid wages: every hour worked through your last day, including the final partial pay period. The FLSA requires these on the next regular payday regardless of how you separated.
  2. PTO payout depends on your state and handbook: California, Colorado, Illinois, Massachusetts, Montana, Nebraska, North Dakota and Rhode Island require accrued vacation to be paid out.
  3. Apply supplemental withholding: PTO payouts and bonuses are supplemental wages — the IRS default is a flat 22%, or you can use the aggregate method.
  4. Cap Social Security at the wage base: the 6.2% Social Security tax stops at $176,100 of wages for 2025; the 1.45% Medicare tax does not.
  5. Offset any 401(k) loan: on separation the plan may take the outstanding balance out of your final pay, and any shortfall becomes a taxable distribution.
Final Paycheck Formula
Net Final Pay = Gross − FICA − Federal Withholding − State Tax − 401(k) Loan Offset

Gross = unpaid regular wages + PTO payout + commission/bonus owed + severance

PTO payout = unused hours × hourly payout rate (state-dependent)

FICA = 6.2% Social Security (up to the wage base) + 1.45% Medicare (uncapped)

Federal withholding = 22% flat supplemental rate, or the aggregate method

State tax = varies; six states levy no wage income tax at all

📋 Which Parts of a Final Paycheck Are Legally Required?

A final paycheck is not one payment — it is up to four legally distinct buckets, and each has its own deadline and its own rules about what the employer may deduct. Confusing them is the single most common reason departing employees under-estimate what they are owed.

ComponentLegally required?Typical deadline
Wages worked through last dayYes — FLSA, all statesNext regular payday
Accrued vacation / PTO payoutOnly in 8+ states or if policy promises itCA: at separation; others vary
Earned commission / bonusYes if fully earned under the planPer plan document
SeveranceNo — only if contracted or policyPer agreement
401(k) loan offsetEmployer is permitted, not requiredPlan correction window

The practical upshot: if you want to know what your last check should be, you must check your state's payout rule and your employee handbook. A handbook promise to pay out PTO is enforceable in most states even where no statute requires it.

🏛️ State PTO Payout Rules at a Glance

Whether unused vacation turns into cash at separation is a state question, and the answer splits the country roughly in half. Use the state selector in the calculator above to switch the PTO payout on or off.

✅ Payout required

California, Colorado, Illinois, Massachusetts, Montana, Nebraska, North Dakota and Rhode Island. In these states accrued vacation is treated as earned wages, so it must be paid on the same schedule as the final wages.

⚠️ Payout per policy

The majority of states, including Texas, Florida, New York and Ohio, defer to the employer's written policy. If the handbook is silent, forfeiture is usually legal.

🚫 Payout prohibited by policy

Some handbooks contain a "use it or lose it" clause. That clause is void in the eight payout states above, but enforceable elsewhere.

💡 Sick leave is different

Most payout statutes cover vacation only. Paid sick leave is generally not payable at separation unless the policy says so — this is the most commonly mis-assumed component.

🧾 How the IRS Taxes a Final Paycheck

Final pay is taxed like any other wage income, but the timing of the withholding can surprise people. If your last check bundles regular wages with a PTO payout and a bonus, the IRS treats the supplemental portion under one of two methods:

FICA is not optional and is not affected by the method you choose: 6.2% Social Security up to the $176,100 wage base for 2025 and 1.45% Medicare on every dollar, plus the 0.9% Additional Medicare surtax above $200,000 of wages. Your employer matches those amounts separately.

⚖️ What an Employer May and May Not Deduct

The final paycheck is the most heavily regulated paycheck you will ever receive, because it is the last chance an employer has to recover money from you. Federal and state law draw a bright line:

DeductionUsually allowed?Notes
Outstanding 401(k) loan balanceYes, at separationShortfall becomes a taxable distribution
Overpaid wages, with noticeOftenSome states require written consent
Cash shortages / breakageRarelyIllegal in most states, capped in others
Tools, uniforms, equipmentRarelyCannot push pay below minimum wage
Unreturned company laptopUsually notEmployer must sue, not self-help
Wage garnishmentYes, court-orderedFederal cap: 25% of disposable earnings

If the pay you receive looks short, request an itemised wage statement — required in most states — and compare each line to the buckets above. Unpaid final wages commonly carry waiting-time penalties that accrue per day, which can exceed the wages themselves.

❓ Frequently Asked Questions

Do I get paid for unused PTO when I quit?
It depends on your state and your handbook. California, Colorado, Illinois, Massachusetts, Montana, Nebraska, North Dakota and Rhode Island require accrued vacation to be paid out as earned wages. Everywhere else it follows the employer policy — and a handbook that promises payout is normally enforceable even without a statute. Sick leave is usually excluded.
When must my final paycheck arrive?
The FLSA requires wages for hours worked by the next regular payday, and many states are stricter: California pays at the moment of involuntary separation and within 72 hours for voluntary quits, while some states allow up to 30 days for workers who leave voluntarily. Late final wages often trigger waiting-time penalties per day.
Why is my last paycheck smaller than my normal one?
Three usual culprits: supplemental withholding at a flat 22% can differ from your actual marginal rate, an outstanding 401(k) loan may be offset, and if you crossed the Social Security wage base earlier in the year the 6.2% tax stops but a large gross can still push you into the Additional Medicare 0.9% surtax.
Are PTO payouts taxed differently from regular wages?
No — they are ordinary wage income and are subject to FICA and income tax. The only difference is withholding mechanics: PTO payouts are supplemental wages, so payroll may use the flat 22% rate instead of your normal withholding calculation. The tax itself is the same and gets reconciled when you file.
What happens to my 401(k) loan if I get laid off?
The outstanding balance is usually offset against your final paycheck and treated as a distribution. If you are under 59½ the offset is generally taxable plus a 10% early-distribution penalty unless you qualify for an exception. If you can repay the loan within the plan's correction window, the offset is reversed and no tax applies.
Can my employer withhold my final check until I return equipment?
In most states, no. Withholding earned wages as leverage is generally unlawful, and the employer must pursue the equipment through a civil claim or a signed authorisation. A few states permit deductions for unreturned property with prior written consent and within strict caps.

⚠️ Important Disclaimer: This calculator produces an estimate of a final paycheck using the 2025 federal rules — the $176,100 Social Security wage base, 6.2% / 1.45% FICA rates and the 22% flat supplemental withholding rate. It does not know your state's withholding tables, your local taxes, your employer's specific PTO policy or any pre-tax deductions you carry. PTO payout, final-wage deadlines and permitted deductions vary substantially by state and by employer, and severance terms come from your agreement rather than any statute. Treat the result as a planning figure and confirm the exact amount with your payroll department or a qualified employment attorney. This is general information, not tax or legal advice.