PTO Payout Calculator
What your unused paid time off is worth in cash — hourly or salaried, hours or days, under your employer's payout policy — with a rough take-home after withholding.
Ben / Reviewed Sep 27, 2026 / v2.0.0
Results
Showing the numbers you calculated- PTO payout
- $2,400.00
- 80 hours × $30.00
- Estimated take-home
- $1,688.40
- After about $711.60 withheld
- A day off is worth
- $240.00
- $30.00 an hour
- Cost to the employer
- $2,583.60
- Plus the employer's Social Security and Medicare
How the payout adds up
| Hours | Value | |
|---|---|---|
| PTO on the books | 80 | $2,400.00 |
| Paid out | 80 | $2,400.00 |
Estimated withholding
The real numbers depend on your W-4, your state, and how the employer runs the payment.
| Rate | Amount | |
|---|---|---|
| Federal income tax | 22.00% | $528.00 |
| Social Security | 6.20% | $148.80 |
| Medicare | 1.45% | $34.80 |
| Total withheld | — | $711.60 |
| Take-home | — | $1,688.40 |
Journal entry (for the employer)
Assumes the PTO was accrued as a liability. If it wasn't, debit Wages expense. If hours that won't be paid were accrued, reverse that accrual too.
| Account | Debit | Credit |
|---|---|---|
| Pay out the unused PTO | ||
| Accrued PTORelieve the accrued liability | $2,400.00 | |
| Payroll tax expenseEmployer's Social Security and Medicare | $183.60 | |
| CashNet check to the employee | $1,688.40 | |
| Federal income tax withheld | $528.00 | |
| Social Security and Medicare payableEmployee and employer shares | $367.20 | |
| Totals | $2,583.60 | $2,583.60 |
What this does
What your unused paid time off is worth in cash — when you leave a job, or when your employer offers to buy some back.
Enter the balance in hours or days, hourly pay or a salary, and your employer's payout policy. You get the gross payout, anything forfeited, and a rough take-home after withholding.
How the math works
hourly rate = salary ÷ (52 × hours per week) (if salaried) hours on the books = days × hours in a workday (if the balance is in days)
hours paid = hours on the books × share paid out, up to the cap payout = hours paid × hourly rate
Payouts normally use your pay rate when they're paid — not the rate when you earned the time.
Withholding is an estimate. A payout is supplemental pay, so federal tax is often withheld at a flat 22%, plus Social Security, Medicare, and any state tax.
Check my math: a worked example
$30.00 an hour, with 80 hours of PTO on the books and a policy that pays it all out.
- Payout: 80 hours × $30.00 = $2,400.00.
- After roughly $711.60 of withholding, about $1,688.40 lands in the bank.
These numbers come straight from the calculator using its example inputs — if the math ever changes, this example changes with it.
Mistakes I see a lot
- Mixing up days and hours. Turn days into hours with the length of your workday.
- Assuming every state requires a payout. Many leave it to the employer's written policy.
- Expecting the full amount in the bank. A payout is taxed like wages, and federal withholding on it is often a flat 22%.
- Using an old pay rate. Payouts are normally at the rate you're paid when you leave.
- Missing the policy's cap. Hours over it are usually forfeited.
Questions people ask
- Does my employer have to pay out unused PTO?
- It depends on your state and your employer's written policy. California, Colorado, Illinois, Massachusetts, and several other states treat earned vacation as wages that have to be paid when you leave. Many others let the policy decide — including whether "use it or lose it" applies.
- Is a PTO payout taxed?
- Yes, like any wages. It's supplemental pay, so if it's paid on its own, federal tax is often withheld at a flat 22%, plus 6.2% Social Security and 1.45% Medicare, plus state tax where there is one. The real tax gets settled on your return.
- Does sick time get paid out too?
- Usually not, unless it's part of a single PTO bank or your state or policy says so. Separate sick leave generally isn't paid out when you leave.
- What's a payout cap?
- A limit on the hours that get paid. A policy might pay up to 80 hours even if you've banked 200 — the rest is forfeited, where state law allows it.
- Should I use my PTO or cash it out?
- If the payout is partial or capped, taking the time off before you leave is usually worth more — if your employer allows it. If it's paid in full, it's mostly about whether you'd rather have the time or the cash.
Assumptions and limits
- A salaried hourly rate is the annual salary ÷ (52 weeks × hours per week). A balance in days is days × hours in a workday.
- Hours paid = hours on the books × the share the policy pays, then limited to the cap (if there is one). Everything else is forfeited.
- The payout uses the pay rate entered — normally the rate when it's paid out, not when the time was earned.
- Withholding is an estimate for supplemental wages: federal at the rate entered (22% is the optional flat rate — Treas. Reg. §31.3402(g)-1), Social Security 6.2% unless the year's pay is past the wage base, Medicare 1.45%, and state at the rate entered.
- Whether a payout is required is set by state law and the employer's written policy. Nothing here checks your state's rules.
- The journal entry assumes the PTO was accrued as a liability (ASC 710). If it wasn't, debit Wages expense instead.
Disclaimer: Educational and planning use only. Results depend on what you enter and may not match your lender, your tax return, or professional accounting treatment. Informational content + opinions only — not tax/legal advice.