Is There a Federal Rule for Final Paychecks?
It may come as a surprise, but the federal government does not establish a single nationwide deadline for when final paychecks must be issued. In practice, final paycheck timing is generally governed by state law, which is why employers should review the rules that apply in the state where the employee worked.
Missouri Final Paycheck Rule
Missouri does have a specific rule for discharged employees. Under Missouri law, when an employee is discharged, unpaid wages earned at the contract rate become due and payable on the day of discharge, and the employee may make a written request for payment to be sent to a regular station or office. If payment does not reach that location within seven days after the request, the statute provides for continuing wage penalties, subject to statutory limits. By contrast, Missouri’s Department of Labor states there is no specific Missouri law setting a final-pay deadline when an employee quits; if wages are not paid by the next regular pay period, the employee may pursue legal action.
Because Missouri law can treat discharged employees differently from employees who resign, employers should make sure all final earnings are properly calculated and included in the final payment on time.
Important Final Paycheck Considerations
Even when an employee is terminated, employers generally cannot withhold wages that have already been earned except where a lawful deduction applies. A final paycheck should include all compensation due through the employee’s last day worked, subject to applicable payroll deductions and withholding rules. Missouri’s labor guidance also notes that discharged employees must be paid all wages due at the time of dismissal.
Employers should also review whether the employee is entitled to payment for accrued or unused vacation or PTO. In Missouri, employers are not required to provide vacation pay, holiday pay, or severance pay unless they have agreed to do so by contract or policy. Missouri’s Department of Labor specifically says employers are not required to pay unused vacation at separation unless a contract or established policy creates that obligation.
If severance is being paid, it is generally treated as taxable wages for withholding purposes. Employers should also remember that Missouri does impose state income tax withholding, so final wages may be subject to Missouri withholding in addition to federal income tax withholding, Social Security, and Medicare. Missouri’s 2026 withholding guidance also notes that separately paid supplemental or overtime wages may use a flat 4.7% withholding method, while regular wage withholding follows the annualized percentage formula.
Because final paycheck rules and payroll tax requirements can vary depending on the situation, employers should confirm the rules that apply to their business and workforce before processing a final check.
Estimate Only — Not Legal or Tax Advice
This article and the Missouri final pay calculator are provided for informational purposes only and are intended to offer a general estimate of final pay and payroll tax withholdings. They should not be relied upon as tax, legal, or accounting advice.
Because payroll laws, withholding requirements, and employer obligations can vary based on the facts of each situation, employers should consult qualified professionals for final calculations and compliance guidance.
If you need help processing final paychecks or managing payroll compliance, the Beyond HCM team is here to help. Contact us to learn how our payroll solutions can simplify payroll processing and support your business.
