TX payroll guide

Texas Payroll Laws: Overtime, Final Paycheck & PTO Guide

Texas payroll questions often involve the Texas Payday Law, final paycheck deadlines, federal overtime rules, no state income tax, and whether employer policy promises PTO payout.

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Key Texas payroll rules to check

No Texas state income tax usually simplifies take-home pay estimates.
Final paycheck timing differs for discharge versus resignation.
Overtime usually starts with the federal over-40-hours rule.
PTO payout is usually a policy or agreement question.

Texas overtime rules

Texas generally uses the federal FLSA overtime framework for covered non-exempt workers, commonly overtime after more than 40 hours in a workweek.

If a Texas employee is discharged on Monday, the final-pay timing question is different from an employee who resigns. Calculate wages owed first, then compare the deadline to the Texas Payday Law framework.

Open the Overtime Pay Calculator →

Texas final paycheck timing

Under the Texas Payday Law, discharged employees are generally due final wages within six days. Employees who resign are generally due final wages by the next regular payday.

Tip: Save pay stubs, timecards, commission plans, PTO balances, handbook pages, resignation or termination documents, and any payroll emails before contacting HR or an agency.

Texas PTO and vacation payout

Texas PTO payout is typically controlled by the employer's written policy or agreement. If the policy promises payout of unused paid leave, keep a copy of that policy with your wage records.

Estimate accrued PTO →

Official Texas payroll resources

Use PayRulesHub as a worksheet, then verify the current rule with official agencies before making a payroll, legal, or tax decision.

Texas payroll FAQ

When is a final paycheck due in Texas?

A discharged employee is generally due final wages within six days; an employee who resigns is generally due by the next regular payday.

Does Texas have state income tax?

No. Texas does not have state wage income tax, though federal withholding, FICA, benefits, and deductions still affect net pay.

Does Texas require PTO payout?

Usually the written employer policy or agreement controls whether unused PTO is paid out.