Finiquito literally transaltes to settlement; to settle your account.
Finiquito is paid to your employee such as a maid or personal assistant when you end the employment relationship with that person. It gets even a little more complicated than that though. Because let’s say you have two properties, your home and a rental. Your maid cleans your home on certain days and cleans the rental on other days. Down the road you sell the rental unit. You have to pay the maid a finiquito for that property even though she will continue to clean your private residence.
How do you calculate finiquito? There are several things you have to account for such as: the length of time the person worked for you and their salary. To calculate finiquito, you can use the calculator below.