Final Paycheck Calculator

What Is a Final Paycheck?

A final paycheck is the last payment from an employer upon termination, including wages, accrued PTO/vacation, sick leave, bonuses, and other earned compensation minus mandatory deductions.

Frequently Asked Questions

What is a final paycheck?

A final paycheck is the last payment an employee receives upon termination of employment. It includes wages for hours worked, accrued vacation/PTO, sick leave payout, and any outstanding bonuses or commissions.

What must be included in a final paycheck?

Final paychecks typically include: regular wages for hours worked, overtime pay, accrued but unused vacation/PTO, sick leave (if required by law), commissions earned, bonuses due, and any other earned compensation.

How soon must a final paycheck be issued?

Timing varies by state. Some states require immediate payment upon termination (e.g., California, New York), while others allow payment by the next regular payday.

Can deductions be taken from a final paycheck?

Deductions are limited to legally required amounts (taxes, wage garnishments), authorized deductions (benefits, retirement), and items explicitly agreed upon in writing.

What happens to unused vacation time?

Most states require payout of accrued, unused vacation time. Some states allow forfeiture under certain policies. Check your state laws and company policy.

Is sick leave paid out at termination?

Sick leave payout varies by state and policy. Some states require payout of accrued sick leave, while others permit forfeiture. Check local regulations.

How are bonuses handled in final pay?

Bonuses earned but unpaid at termination should be included. Discretionary bonuses not yet earned may not be owed. Check your employment contract terms.

What deductions are mandatory on final pay?

Mandatory deductions include: federal income tax, Social Security (FICA), Medicare, state income tax, and court-ordered wage garnishments or child support.

Can an employer withhold the final paycheck?

Employers generally cannot withhold a final paycheck except for valid deductions (return of equipment, outstanding advances with written authorization).

How is overtime calculated on final pay?

All overtime hours worked but not yet paid must be included at the applicable overtime rate (typically 1.5× regular rate).

What are penalties for late final pay?

Late payment penalties vary by state. Some states impose daily penalties (e.g., California: full daily wage for each day late, up to 30 days).

How does COBRA affect final pay?

COBRA continuation coverage may require premium payments. These cannot be deducted from the final paycheck without authorization, but can be billed separately.

What is a wage penalty for late payment?

Many states impose waiting time penalties when an employer willfully fails to pay final wages on time. Penalties can equal one day's pay per day late.

How are expense reimbursements handled?

Outstanding business expenses should be reimbursed separately from the final paycheck. Keep records of all unreimbursed expenses.

What if the employee owes the company money?

The employer can deduct amounts owed (equipment, loans, advances) only with written authorization. Without authorization, the employer must pursue separate collection.

Is severance pay part of the final paycheck?

Severance is typically paid separately from the final paycheck. Final pay covers earned wages and accrued benefits; severance is additional compensation for job loss.

How are commissions paid after termination?

Commissions earned before termination are generally owed. Some states require payment regardless of collection status; others allow payment upon customer payment.

What records should be kept?

Keep the final pay stub, termination letter, time records, benefit payout documentation, and any correspondence about deductions or disputes.

Can final pay be direct deposited?

Yes, if the employee previously used direct deposit. Otherwise, a physical check may be required. Some states allow payment via payroll card.

What if the employee cannot be located?

Employers must make reasonable efforts to deliver the final paycheck. Unclaimed wages eventually must be turned over to the state as unclaimed property.

How does resignation without notice affect final pay?

Some states allow deduction from final pay if an employee quits without required notice, but only up to the amount of wages earned during the notice period.

What is a pay stub for final pay?

A final pay stub itemizes all wages, deductions, and net pay. It must comply with state itemized wage statement requirements.

Are stock options included in final pay?

Vested stock options are not part of the final paycheck but may have their own exercise windows post-termination. Unvested options typically lapse.

How does termination for cause affect final pay?

Termination for cause does not eliminate the obligation to pay earned wages and accrued benefits. However, severance or bonus pay may be forfeited.

What if the final paycheck is short?

Contact your employer to correct the error. If unresolved, file a wage claim with your state labor department or consult an employment attorney.

How do state laws differ for final pay?

State laws vary on: timing of payment, vacation payout requirements, sick leave payout, deduction limits, and penalties for late payment. Check your state labor department.

What is the role of the DOL in final pay?

The US Department of Labor enforces federal wage laws including minimum wage and overtime under FLSA. State labor departments enforce state-specific final pay laws.

How do you file a final pay complaint?

File a wage claim with your state Department of Labor or equivalent agency. Provide pay stubs, time records, and any relevant correspondence.

What attorneys specialize in final pay issues?

Employment attorneys, wage and hour lawyers, and labor law specialists handle final pay disputes. Many offer free consultations.

What resources help with final paycheck calculation?

Our calculator, state labor department websites, employment attorneys, and payroll professionals can help ensure accurate final pay.

How can Atlascalcs final paycheck calculator help?

Our calculator computes regular wages, vacation/sick payouts, bonuses, deductions, and net final pay for a complete picture of your final compensation.

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External Resources

• DOL - Final Pay — US Department of Labor resources on final paycheck requirements and wage payment laws.
• SHRM - Final Paycheck Laws — Society for Human Resource Management state-by-state final paycheck law guidance.
• Nolo - Final Paycheck — Nolo legal information on final paycheck rights, deductions, and timing requirements.
• FindLaw - Final Wages — FindLaw resources on final wage payment laws and employee rights at termination.
• Justia - Final Paycheck — Justia employment law coverage of final paycheck requirements and penalties.
• LawInfo - Final Pay Laws — LawInfo guidance on final pay laws, vacation payout, and late payment penalties.