When terminating an employee, certain questions must be answered to make the transition as smooth as possible for both you and the employee.
Is the employee temporarily terminated (i.e. on a seasonal basis)?
Will the employee be receiving any last payroll checks for work performed, but not paid?
If so, do you want the employee to receive the payment as a direct deposit (if they typically receive monies this way), or do you prefer to cut them a live check?
Are there any state laws dictating when/how the employee should receive the final paycheck?
Once you determine the answers to these questions, terminating the employee in myPay Solutions Direct is simple and easy. Follow these simple data entry tips:
If the employee is being terminated, whether on a permanent or seasonal basis, an Inactive Date must be entered into the program. Open the Setup > Employees screen and click the Personal tab. In the Inactive Date field, enter the last date the employee worked. Note: If the employee is a seasonal employee, this date may be removed from the same field in order to reactivate the employee in myPay Solutions Direct.
If the employee will receive a final paycheck, your decision to pay the employee via direct deposit (if this is how they are typically being paid) or not determines your next steps.
If the employee has any outstanding loans from your company or may be liable for any deductions from pay with the final check, you may want to consider creating a live check instead of using direct deposit. This will ensure a smooth transition, while protecting your assets.
In order to ensure that an employee who typically receives payment via direct deposit is given a live check, suspend the employee’s direct deposit account by choosing Setup > Employees and changing the employee’s status in the Direct Deposit tab from Approved to Suspend. If the employee should receive the final payment via direct deposit, leave the entry as is.
If you're not sure whether or not your state has special rules regarding the timing of an employee’s last paycheck, check with your accountant. They can ensure that you pay your employees’ final checks according to your state’s specific rules.
Any questions about these or other myPay Solutions Direct tips? Ask your payroll specialist for more information.