Wyoming PTO payout law

In Wyoming, earned vacation is generally paid when a job ends unless a written policy says otherwise. Here is the rule, its source, and what your balance is worth.

Wyoming vacation payout rule

Required unless a written policy says otherwise

In Wyoming, accrued unused vacation must be paid when you leave unless the employer's written policy says accrued vacation is forfeited at termination and you acknowledged that policy in writing.

Checked against excerpts of the official source · September 25, 2026

Payout when a job ends: Required unless a written policy says otherwise
Use-it-or-lose-it: No state rule found
State income tax on a payout: None
Source: Wyo. Stat. §§ 27-4-507, 27-4-501(a)(iii) (opens in a new tab)

What your unused PTO is worth

Your PTO payout

Wyoming · Required unless a written policy says otherwise

$2,000.00 before tax, for 80 hours

Your PTO payout, line by line
Unused PTO 80 h × $25.00	$2,000.00
Federal income tax Flat 22% supplemental rate	−$440.00
Social Security 6.2%	−$124.00
Medicare 1.45%	−$29.00

Estimated after federal withholding

$1,407.00

Hourly value: $25.00
Share withheld: 29.65%

Required unless a written policy says otherwise

In Wyoming, accrued unused vacation must be paid when you leave unless the employer's written policy says accrued vacation is forfeited at termination and you acknowledged that policy in writing.

State and local income tax are not included. Your employer may withhold federal tax by the aggregate method instead of the flat rate; either way, the final tax is settled on your return.

The rule in Wyoming

The rule comes from Wyo. Stat. §§ 27-4-507, 27-4-501(a)(iii).

Use-it-or-lose-it. We found no Wyoming statute or agency rule on use-it-or-lose-it policies, so the employer’s written policy usually decides.

What to check in your policy

Look for a written clause on unused vacation at separation. If there is none, the time is generally owed. If there is one, it usually decides, so read what it says about quitting, being let go and notice periods.

Tax on a Wyoming payout

A payout is taxable wages. Take 80 unused hours at $25.00 an hour, worth $2,000.00. Paid on top of regular wages, it is a supplemental payment, so many employers withhold $440.00 of federal income tax at the flat 22% rate, plus $124.00 of Social Security and $29.00 of Medicare, leaving about $1,407.00.

Wyoming does not tax wage income, so that is close to what you receive. Withholding is not the final tax; any difference is settled on your return.

Questions people ask

Does Wyoming require employers to pay out unused PTO?

Usually. In Wyoming, accrued unused vacation must be paid when you leave unless the employer's written policy says accrued vacation is forfeited at termination and you acknowledged that policy in writing.

Is use-it-or-lose-it vacation legal in Wyoming?

Usually, if the written policy says so. We found no Wyoming statute or agency rule on use-it-or-lose-it policies, so the employer’s written policy usually decides.

How is a PTO payout taxed in Wyoming?

Federally, a payout on top of regular wages is a supplemental payment: many employers withhold 22% for income tax, plus Social Security and Medicare. Wyoming does not tax wage income, so no state income tax is withheld.

Sources

Each source was read on September 25, 2026.