Final pay should include which items and be paid by when?

• A. All earned wages, overtime, and accrued PTO; pay on or before the final paycheck date per state law.
• B. Only base wages
• C. Only overtime
• D. No wages if terminated

Answer: (A)

When someone leaves, you must pay all compensation that’s earned up to that moment. That includes base wages, any overtime, and accrued paid time off (PTO) that the employee is entitled to receive. The final pay must be issued in a timely manner, typically on the final paycheck date or the next regular payday as required by state law. Accrued PTO is treated as earned pay in many jurisdictions, so it should be included in the final payout. The other options fall short because they omit portions of earned wages (for example, only base wages) or misstate the obligation (such as no wages due upon termination).