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Labor Code Section 201 requires that discharged employees be paid immediately.
The vacation wages also must be paid at the time the employee is discharged. These wages can be issued by check or cash. Either way, a deduction statement must be issued on payment. You will have satisfied your obligation to pay wages and vacation wages immediately on discharge and avoided any waiting time penalties under Labor Code Section 203.
Failure to pay separating employees in accordance with Labor Code Section 201 can result in having to pay the employee a penalty equivalent to as much as 30 days wages under the provisions of Labor Code Section 203.
You can find more information on Final Pay in the HR Library.