The last paycheck includes all wages for hours worked through the end of the termination date. In some cases, this paycheck will include accrued but unused vacation, severance, and other payments.
- If the employer's PTO plan accrues in advance, the employer may not be obligated to pay out the portion of PTO for the coming accrual period.
- However, negative PTO balances (i.e., time "borrowed" against future accrual) cannot be deducted from a final paycheck amount.
Employers should work with their payroll provider to calculate the correct amount for the number of days worked in the final pay period before termination, plus any PTO amounts that must be paid out, and minus any deductions.
Administrators should contact their payroll provider for assistance in calculating the amount of an employee's last paycheck. Those with Zenefits Payroll should refer to these instructions.
Each state has specific laws governing final/last paychecks, but in general, this paycheck should include all wages for time worked up until the termination date.