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Forty unused hours at $25 for one person
One employee has 40 unused hours. The loaded hourly cost is 25. The 25 is an example rate. Statement 101 does not publish one. Use the pay rate on the statement date. If you want the 2026 employer Social Security and Medicare shares from Publication 15, 6.2 percent and 1.45 percent, put them inside the 25 rather than on top of the result.
Unused hours each: 25% lower
Change unused hours each to 30 hours while keeping the other example values the same.
Unused hours each: 25% higher
Change unused hours each to 50 hours while keeping the other example values the same.
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Quick answer
What does the PTO liability calculate?
What does unused PTO cost at the loaded hourly rate? This calculator uses unused hours each, loaded hourly cost, and employees to estimate unused hours times a loaded hourly cost immediately in your browser.
With the values currently entered, the result is $1,000.00 — for one employee. It also shows employees, unused hours each, and loaded hourly cost.
How to use the PTO liability
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- Unused hours each — entered in hours
- Loaded hourly cost
- Employees — entered in employees
PTO liability formula
Liability = employees × unused hours × loaded hourly cost.
Assumptions
- GASB Statement No. 101 measures a liability for leave that has not been used when the leave was earned, it accumulates, and it is more likely than not to be used or paid. The measurement uses the pay rate as of the financial-statement date. Salary-related payments that are directly and incrementally associated with the leave are included. The $25 rate is an example. The statement does not publish one.
- FASB Statement 43, now in ASC 710, is the private-company counterpart. It accrues a liability when the leave was earned, the rights vest or accumulate, payment is probable, and the amount can be estimated. The Department of Labor says the FLSA does not require pay for vacation. Type the hours you expect to pay. For one pool of hours, set employees to 1 and type the total hours. IRS Publication 15 sets the 2026 employer shares at 6.2 percent for Social Security and 1.45 percent for Medicare. Put those in the hourly cost if you want them there.
Verify the inputs
Authoritative sources
These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.
Recognizes a liability for unused leave that was earned, that accumulates, and that is more likely than not to be used or paid. Measures it at the pay rate on the financial-statement date, and includes salary-related payments directly and incrementally associated with the leave.
Vacation leaveUS Department of LaborScope: US federal wage-hour law; vacation pay is a matter of agreementThe Fair Labor Standards Act does not require payment for time not worked, such as vacations or sick leave. Those benefits are a matter of agreement between an employer and an employee.
Publication 15, Circular E, Employer’s Tax GuideUS Internal Revenue ServiceScope: US employer payroll tax; rates are user-editableSplits Social Security (6.2%) and Medicare (1.45%) on wages. Employee and employer each pay 7.65% on wages below the Social Security wage base.
Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.
Practical guide
PTO liability example and edge cases
PTO liability on this page is unused hours times a loaded hourly cost. GASB Statement No. 101 measures unused leave that was earned, that accumulates, and that is more likely than not to be used or paid. The rate is the pay rate on the financial-statement date, including salary-related payments tied directly to the leave.
Example: Forty unused hours at $25 for one person
One employee has 40 unused hours. The loaded hourly cost is 25. The 25 is an example rate. Statement 101 does not publish one. Use the pay rate on the statement date. If you want the 2026 employer Social Security and Medicare shares from Publication 15, 6.2 percent and 1.45 percent, put them inside the 25 rather than on top of the result.
- Unused hours each
- 40 hours
- Loaded hourly cost
- 25
- Employees
- 1 employees
Calculated result$1,000.00for one employee
One employee times 40 hours times 25 is 1,000. That is the liability for these hours at this rate. Twelve employees with the same hours and the same rate would be 12,000.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- Read the 1,000 first. It is 1 times 40 times 25. Each extra hour at this rate adds 25. Each extra employee with the same 40 hours adds another 1,000.
- Statement 101 is written for state and local governments. Private companies look to FASB Statement 43, now in ASC 710. That statement accrues the leave when it was earned, the rights vest or accumulate, payment is probable, and the amount can be estimated. The 1,000 is that multiplication once you decide the four conditions are met.
Edge cases worth checking
Unused leave expires at year-end
Statement 101 looks for leave that accumulates. Statement 43 says the same for rights that vest or carry forward. The Fair Labor Standards Act does not require vacation pay. The Department of Labor treats it as a matter of agreement. Type 0 for hours the policy will not pay, or the 1,000 includes time that expires.
Payroll tax is already inside the $25
The 25 is the loaded cost. Publication 15 for 2026 sets the employer share at 6.2 percent for Social Security and 1.45 percent for Medicare. Those belong inside the 25 when you want them in the liability. Adding them again on the 1,000 counts the same tax twice. Above the 2026 Social Security wage base of 184,500, the 6.2 percent stops.
What changes the result most
Unused hours each
Keep unused hours each on the same time basis as the other inputs. Monthly and annual values are easy to mix up.
Loaded hourly cost
Use a current amount for loaded hourly cost. Include fees or recurring costs that belong in the same figure.
Employees
Measure employees with the same unit shown beside the input. Convert first if your source uses another unit.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
Unused hours each: 25% lower
30 hours$750.00for one employee
Unused hours each: 25% higher
50 hours$1,250.00for one employee
Loaded hourly cost: 25% higher
31$1,240.00for one employee
Common mistakes
Check unused hours each
GASB Statement No. 101 measures a liability for leave that has not been used when the leave was earned, it accumulates, and it is more likely than not to be used or paid. The measurement uses the pay rate as of the financial-statement date. Salary-related payments that are directly and incrementally associated with the leave are included. The $25 rate is an example. The statement does not publish one. Make sure this matches the number you enter.
Keep employees consistent
FASB Statement 43, now in ASC 710, is the private-company counterpart. It accrues a liability when the leave was earned, the rights vest or accumulate, payment is probable, and the amount can be estimated. The Department of Labor says the FLSA does not require pay for vacation. Type the hours you expect to pay. For one pool of hours, set employees to 1 and type the total hours. IRS Publication 15 sets the 2026 employer shares at 6.2 percent for Social Security and 1.45 percent for Medicare. Put those in the hourly cost if you want them there. Use the same units and time period throughout the calculation.
Do not rely on one pto liability scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
What does unused PTO cost at the loaded hourly rate?
It does not replace a quote, contract, accountant, or local employment guidance.