AZArizona PTO payout law
In Arizona, getting paid for vacation you earned but never used is up to your employer's written policy. Payout is governed by the employer's policy. The final-wages statute does not expressly cover PTO.
How much is my unused vacation worth? Arizona calculator
What these words mean
- PTO
- Paid time off: vacation, personal days or a combined bank of paid days.
- Payout
- Being paid cash for paid time off you earned but never used.
- Withholding
- Money your employer sends to the tax office from your pay before you get it. It is not extra tax. It is settled when you file your return.
- Social Security and Medicare (FICA)
- The 7.65% taken from every paycheck for retirement and health programs.
- Final paycheck
- The last pay you are owed after a job ends: all hours worked and, in some states, your unused vacation.
Questions
Do I get paid for unused vacation when I leave a job in Arizona?
Paying out vacation you earned but did not use is up to your employer's written policy. Payout is governed by the employer's policy. The final-wages statute does not expressly cover PTO.
Can my employer have a "use it or lose it" rule in Arizona?
Usually yes, as long as the rule is written down and you were told about it in advance.
How much tax comes out of a vacation payout?
When it is paid as a separate lump sum, 22% is held back for federal income tax plus 7.65% for Social Security and Medicare, plus state tax where there is one. If that is more than you really owe, you get the difference back when you file your tax return.
When do I get the money in Arizona?
With your last check: within 7 working days or the next regular payday, whichever comes first if you were fired, by the next regular payday if you quit. See Arizona final paycheck rules.