Which of the following describes final pay for a terminated employee?

• A. Include only base wages.
• B. Include all earned wages, overtime, and accrued PTO; pay on or before the final paycheck date per state law.
• C. Pay nothing until the next payroll cycle.
• D. Include all wages and PTO, but only after next quarter.

Answer: (D)

Final pay when someone is terminated should include everything earned up to the last day of work, and it must be paid by the final paycheck date or within the time frame required by state law. This means base wages, any overtime, and accrued but unused PTO (if applicable under law or company policy) all get included. The correct choice captures both the full amount owed and the proper timing.

Why this is best: it reflects the obligation to compensate the employee for all earned wages and PTO promptly at termination, not delaying payment. Paying only base wages omits overtime and PTO, and delaying payment until the next payroll period or next quarter ignores typical state-law timing requirements and the expectation of prompt final compensation.

In short, final pay should be all earned wages and accrued PTO, paid by the final paycheck date or as the state law requires, rather than delaying until a later date.