How to use it
- Choose a mode: per paycheck, per hours worked, or payout.
- Enter your annual PTO (or accrual rate), pay frequency and hours.
- For payout, enter your PTO balance and hourly rate.
The formula
PTO per paycheck = annual PTO hours ÷ paychecks per year
Accrual per hour = PTO earned ÷ hours worked (1 ÷ 30 = 0.0333)
Payout = PTO hours × hourly rate
Example: 15 days of PTO is 120 hours. Paid biweekly, you accrue 120 ÷ 26 = 4.62 hours each paycheck, or 0.0577 hours per hour worked.
Good to know
- California requires at least 1 hour of paid sick leave for every 30 hours worked, usable up to 40 hours (5 days) a year.
- California, Colorado and Massachusetts require employers to pay out earned vacation when you leave; many other states follow the employer's written policy.
- PTO payouts are taxed as supplemental wages; federal withholding is often a flat 22%.
Questions
How is PTO accrual calculated?
Divide your annual PTO hours by the number of pay periods (or by 2,080 hours worked). 80 hours a year paid biweekly is 80 ÷ 26 = 3.08 hours per paycheck.
How many hours is 2 weeks of PTO?
80 hours for a 40-hour week. Three weeks is 120 hours.
Do I get paid for unused PTO when I quit?
Depends on the state. California, Colorado and Massachusetts require payout of earned vacation. Elsewhere it depends on your employer's written policy.
What is a PTO cap?
A maximum balance. Once you reach it you stop accruing until you use some PTO. Caps are often 1.5 to 2 times the yearly accrual.