Virginia PTO Payout Laws and Payout Calculator
Blasko Sarcevic
Published
Find out whether Virginia requires employers to pay out unused PTO at separation, and estimate what your payout is worth. (Policy-dependent.)
Topic
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Virginia PTO payout rule: Policy-dependent. Diagram of unused hours times hourly rate equals payout.
Hourly rate $25.00 · 40 unused hours.
Policy-dependent: Payout depends on employer policy. Optional flat 5.75% supplemental rate.
Estimates only — not legal or tax advice. 2026 rates and state rules can change; confirm them before relying on them.
Does Virginia require PTO payout at termination?
Virginia has no statute requiring PTO payout. Whether you are paid depends on your employer's written policy or contract. If the policy promises payout, the employer must honor it. Payout depends on employer policy. Optional flat 5.75% supplemental rate. [VERIFY: confirm current Virginia statute and case law before publishing.]
How PTO payout is calculated in Virginia
Multiply your unused PTO hours by your hourly rate. Salaried employees divide annual salary by 2,080 to get the hourly rate first.
Example: $52,000 / 2,080 = $25/hour; 40 unused hours = a $1,000 gross payout. Use the calculator above for your exact figures.
Is a PTO payout taxed in Virginia?
A PTO payout is taxable supplemental income: 22% federal withholding, Social Security (6.2%), and Medicare (1.45%), plus Virginia state income tax.
General information only, not legal or tax advice. State rules change; confirm with your state labor agency or counsel.
Frequently asked questions
- Does Virginia require employers to pay out unused vacation?
- Virginia has no statute requiring PTO payout. Whether you are paid depends on your employer's written policy or contract. If the policy promises payout, the employer must honor it. Payout depends on employer policy. Optional flat 5.75% supplemental rate.
- Is "use-it-or-lose-it" legal in Virginia?
- In Virginia, use-it-or-lose-it policies are generally allowed if clearly stated in writing.
- How is my Virginia PTO payout taxed?
- At the federal supplemental rate (22%) plus Social Security and Medicare, and Virginia income tax.
About the author
Blasko Sarcevic
Founder, Time-Out Zone
Connect on LinkedIn
Connect on LinkedInBlasko writes about leave management, policy design, and running time-off operations at scale.
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