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Employment Law/Vacation paid on termination


I was recently laid off as of 5/8/15.  I received 2 checks dated 5/14/15, which would have been the normal payday.  One was for the wages for the period ended 5/8, and one was for my unused vacation time.  I understand the vacation payout should be taxed.  My 401k deduction was also taken out, which I am fine with since that will go to my account.  My question is this: both checks included the normal deduction for my medical premiums.  If the check was issued as part of the same pay period, can my employer take out an additional deduction for medical from the vacation payout, even though my benefits were not extended?  My termination date is shown on a letter as 5/8 and was not extended to include the vacation time.  My insurance coverage would terminate 5/31/15 regardless of whether I had vacation time coming or not.  It seems to me that I am being penalized for having vacation time accrued, as if I had no vacation, I would not be paying an additional insurance premium payment.  If it makes a difference, my employer is based in IL, and I reside in AZ.  Thanks for your help!


You have insurance until May 31st. In order to pay for the whole month of May they would have to take out the whole deduction for May. Sounds like they took out one part on the regular check and one part on the vacation pay instead of taking the whole month on the regular check. You would have to pay for the whole month of May. That would be both May deductions that you would normally pay in a Month.


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Shirley McAllister, CPP, PHR


I can answer questions about payroll laws and payroll tax laws and Human Resource laws and agencies. I can answer federal payroll and human resource law questions and most states; I do not have a knowledge of the local taxes for cities and counties within the state. If and when I can I will try and send you the website where you can reference the answer and where you can obtain more information as well as a contact number if needed for that particular agency. Some agencies I have worked with are IRS, Department of Labor (federal and state), Revenue Canada (and provincial governments), Inland Revenue, OSHA (0ccupational Safety and Health Administration); Social Security Administration and National Child Support as well as other agencies in Payroll and Human Resources. Some Laws I am particularly familiar with are FLSA (Fair Labor Standards Act), ADA (Americans With Disabilities Act), FMLA (Family Medical Leave Act) COBRA (Consolidated Omnibus Reconciliation Act ) , QDRO's, QMCSO's, and other support orders and garnishments, USERRA (Uniformed Services Employment and Remployment Rights Act,PPA Act (Pension Protection Act of 2006, As well as most other employment type acts. I am also well versed in the Title V Civil Rights Act and the HIPAA (Health Insurance Portability and Accountability Act).


30 years in Payroll and Human Resources

SHRM (Society of Human Resources) APA (American Payroll Association) DOLEA (Department of Labor Employers Association) CPA (Canadian Payroll Association) NAPW (National Association of Professional Women) The Mentoring Network

PHR Certification in Human Resources CPP Certification in Payroll in U.S. Payroll Administrator and Payroll Supervisor certification in Canada

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