Which payroll item represents compensation paid after separation from service?

Which payroll item represents compensation paid after separation from service?

• A. SGLI
• B. Final pay
• C. Meal deductions
• D. Leave balance

Answer: (B)

Final pay is the last paycheck issued when a service member leaves or retires, settling earnings up to the date of separation and any terminal pay required by policy. It represents compensation paid after separation from service. SGLI is life insurance coverage, not pay. Meal deductions are amounts taken out for meals, reducing take-home pay but not pay itself. Leave balance is the record of unused leave and, while it may be cashed out in some cases, the category itself isn’t the compensation paid after separation. So the correct choice is final pay.

Final pay is the last paycheck issued when a service member leaves or retires, settling earnings up to the date of separation and any terminal pay required by policy. It represents compensation paid after separation from service. SGLI is life insurance coverage, not pay. Meal deductions are amounts taken out for meals, reducing take-home pay but not pay itself. Leave balance is the record of unused leave and, while it may be cashed out in some cases, the category itself isn’t the compensation paid after separation. So the correct choice is final pay.