What goes into a final paycheck?
A final paycheck is the last wage payment an employer issues after an employee's separation from the company — whether through termination, layoff, or resignation. It typically consists of two parts: prorated wages for the days worked in the incomplete final pay period, and any unused PTO or vacation payout required by state law or company policy.
Prorated wages are calculated by dividing the number of days worked by the total days in the pay period, then multiplying by your standard gross pay. For example, if your biweekly gross pay is $3,000 and you worked 9 of 14 days in the final period, your prorated wages are ($3,000 × 9/14) = $1,928.57. Use our payroll tax calculator for a regular full-period paycheck breakdown.
State law differences — California's rules are the strictest
Final paycheck timing is governed entirely by state law, and the variation is dramatic. California has the most demanding rules in the country: employers must issue a final paycheck on the day of termination (same day), and if an employee quits without notice, within 72 hours. Failure to comply triggers penalty wages equal to the employee's daily rate for every day the check is late, up to 30 days. Massachusetts and Colorado also require same-day or next-business-day payment upon involuntary separation.
At the other end of the spectrum, Florida, Georgia, and Mississippi have no state-specific final paycheck timing laws — courts generally apply the next scheduled payday standard. Texas requires payment within 6 calendar days for involuntary terminations but allows the next scheduled payday for voluntary resignations. See the state law card on this page for the exact deadline in your state.
Unused PTO payout at separation follows different rules. California, Colorado, Illinois, Maine, Massachusetts, and D.C. treat earned vacation as wages — it must be paid out in the final check regardless of the employer's policy. In most other states, payout depends on whether the employer's written policy promises it. If you're tracking accrued PTO, the PTO accrual calculator can help you verify your balance.
Can employers deduct from a final paycheck?
Standard payroll tax withholding (federal income tax, Social Security, Medicare, and state income tax) is always applied to a final paycheck just like any other. However, deductions for unreturned equipment, damaged company property, uniform costs, or cash register shortages are heavily regulated. The FLSA prohibits deductions that would drop pay below the federal minimum wage. Many states go further — California bars equipment-loss deductions entirely unless fraud or intentional damage is proven. A prior written authorization is required for any non-standard deduction in most states. If you're owed overtime in your final period, the overtime pay calculator can help you verify the correct amount owed.
What to do if your employer doesn't pay on time
If your final paycheck is late, start by making a written demand to your employer or HR department — a simple email documenting the request establishes a paper trail. If the employer still fails to pay, file a wage claim with your state's Department of Labor (links in the state law card on this page). Most state agencies resolve wage claims at no cost to the employee. For amounts over a few thousand dollars, or if the employer disputes the claim, consulting an employment attorney is often worthwhile — many work on contingency for wage theft cases. The U.S. Department of Labor's Wage and Hour Division handles FLSA violations when state law doesn't provide adequate relief.