Use this tool to quickly estimate the potential payout you can receive from selling your unused paid time off (PTO) or annual leave days back to your employer, factoring in your salary and any company-specific premium rates.
Selling Leave Days Calculator
Estimated Leave Payout
Selling Leave Days Calculator Formula
Daily Rate = Annual Salary / Working Days Per Year
Payout = Daily Rate $\times$ Leave Days to Sell $\times$ Selling Rate Multiplier
Formula Source: U.S. Department of Labor, SHRM (Society for Human Resource Management)
Variables
- Annual Salary: Your gross yearly salary, used to determine your base daily pay rate.
- Working Days Per Year: The total number of non-holiday, non-weekend days you work annually (typically 260 or 261).
- Leave Days to Sell: The specific number of accrued PTO or vacation days you are offering back to your employer.
- Selling Rate Multiplier: The factor by which your daily rate is multiplied. This is usually 1.0 (straight pay) but can be 1.5 or 2.0 depending on company policy.
Related Calculators
- Annual Leave Accrual Calculator
- PTO Cash-Out Estimator
- Overtime Pay Rate Calculator
- Sick Leave Balance Converter
What is selling leave days calculator?
A Selling Leave Days Calculator is a financial tool that helps employees estimate the monetary value of their unused paid time off (PTO) or vacation days when they opt for a “buyback” program offered by their employer. Instead of taking the time off, the employee receives a lump sum payment.
This calculation is essential because the value of the leave day is often based on the employee’s current daily wage. The calculator takes the annual salary and divides it by the total number of working days in a year to establish the daily rate. Crucially, many corporate buyback programs offer a premium (a multiplier greater than 1.0) on the daily rate to incentivize employees to sell back their time, and the tool incorporates this factor for an accurate projection.
How to Calculate Selling Leave Days Payout (Example)
- Determine Daily Rate: An employee earns an Annual Salary of $65,000 and works 260 days a year. The Daily Rate is $\$65,000 / 260 = \$250$.
- Identify Days and Multiplier: The employee wishes to sell 7 leave days, and the company offers a Selling Rate Multiplier of 1.25.
- Calculate Payout: Payout is calculated as Daily Rate $\times$ Days to Sell $\times$ Multiplier. So, $\$250 \times 7 \times 1.25$.
- Final Result: The estimated payout is $\$2,187.50$.
Frequently Asked Questions (FAQ)
What is a PTO buyback program?
A PTO buyback program allows employees to exchange unused, accrued paid time off for cash compensation, typically at the end of the year. This is often an option to prevent large PTO liability balances from accumulating on a company’s books.
Is the payout taxed?
Yes. Payouts from selling leave days are considered regular income by the IRS (or relevant tax authority) and are subject to all standard federal, state, and local income taxes, as well as payroll taxes (Social Security and Medicare).
Can I sell any type of leave day?
Generally, only accrued vacation or general Paid Time Off (PTO) can be sold. Sick leave, personal days, and other specific types of leave are usually not eligible for cash-out programs, as these are protected under different employment regulations.
Do I need a Selling Rate Multiplier?
If your company pays you exactly your daily rate for each day you sell, the multiplier is 1.0. If your company offers a 25% premium (e.g., $1.25 for every $1.00 value), your multiplier is 1.25. Check your HR policy for the exact rate.