How our calculator works.
Every figure this tool produces is an estimate generated from the formulas below. Calculations run in your browser. Optional share links include encoded inputs in the URL; see our privacy policy before sharing personal figures.
Gross payout
For salaried employees we derive an hourly rate by dividing annual salary by your scheduled hours per year (hours per week × 52). Hourly employees use their stated rate. Gross payout = hourly rate × accrued unused PTO hours.
Federal withholding
PTO payouts are supplemental wages under IRS Publication 15 (Section 7). For eligible separately identified supplemental payments, this calculator assumes the optional flat 22% supplemental withholding rate, and 37% on the portion that brings annual supplemental wages above $1,000,000. Employers may instead be required or choose to use the aggregate withholding method.
FICA
Social Security is withheld at 6.2% up to the annual wage base ($184,500 for 2026), and Medicare at 1.45% with no cap. The main calculator subtracts wages already paid by this employer from the remaining Social Security wage base. It also estimates 0.9% Additional Medicare withholding on wages above $200,000. Enter prior wages in the optional fields; tools without those fields assume zero prior wages.
State withholding
State rates are illustrative assumptions used to show how withholding affects a payout; they are not a verified current payroll table for all states. Your employer may use a different permitted method. The estimate excludes local taxes and other payroll deductions. Confirm the applicable rate and method with payroll before relying on a net amount.
State payout law
North Carolina's eligible flat supplemental withholding assumption was checked against the 2026 NC-30, Section 12 on September 30, 2026: 4.09%. This is a withholding method, not the 3.99% individual income-tax rate, and does not verify the rest of the state table.
Final-paycheck calculation
The final-paycheck tool adds regular hours × hourly rate and eligible PTO hours × hourly rate. It calculates net only when you enter total withholding and deductions supplied by payroll. It does not apply supplemental withholding to regular wages or estimate overtime premiums, commissions, bonuses, or eligibility.
State payout categories
Each state is classified as payout required, policy dependent, or not required, with the governing statute cited on each state page. Use-it-or-lose-it permissibility and the unpaid-wage statute of limitations are listed per state.
Limitations
Withholding is not the same as your final tax liability, which depends on your full-year income, filing status, and deductions and is settled when you file. These results are estimates and are not legal, tax, or financial advice.
Sources
The sources below explain the federal assumptions. Federal thresholds were checked September 29, 2026; state-law review dates are separate and do not certify every state withholding rate. Each state page also cites the specific statute it relies on.
- IRS Publication 15 (Circular E), Employer's Tax Guide — flat 22% / 37% supplemental wage withholding.
- Social Security Administration — Contribution and Benefit Base — annual Social Security wage base.
- U.S. Department of Labor — Wages Topic — state final-pay and vacation-payout rules.
State-law data review date: June 2026.