This training session covers the laws and procedures affecting pay for terminated employees.
Paying an ex-employee involves not just distributing the ex-employee's final paycheck, but knowing how to properly handle and tax any severance or other benefits due, then integrating these payments with compliance regulations under COBRA or the Stimulus Act.
You also will learn how to handle the more-advanced issues such as requirements for death payments, legal settlements, and stock options.
...and as always, this session will be interactive, so we'll be able to answer your questions on this topic throughout the presentation!
Top FAQs
Various states have requirements re how - and when - an employer must pay final wages. For instance, many states allow employers to pay final wages via direct deposit if an employee previously authorized direct deposit for wages, but these states often have rules regarding the timing of such payments. As such, definitely check your state's requirements.
While many payroll-related regulations are federally-governed, there also are many state requirements, including those for handling garnishment, final paychecks, and unclaimed paychecks. Each state's requirements differ in the details, so be sure to check your state's requirements by clicking the applicable link(s) at the bottom of this page.
Payroll is much more than just handing out paychecks, and includes a variety of responsibilities such as handling garnishments, travel pay, multi-state taxation, unclaimed paychecks, and much more in a timely and accurate fashion.
The answer to when should the last pay check be given is "it depends". Most states have laws mandating how soon a departing employee must receive his or her last pay check. In some, the final paycheck must be given at the time of termination; in others, employers have more flexibility with regard to the timeliness of giving the last pay check.
Generally speaking, an employer might be able to deduct the cost of the equipment from the final pay of non-exempt employees, but employers cannot withhold a terminated employee's paycheck until equipment is returned.
Payroll Administrators must be able to:
- Properly "classify" workers
- Apply the various exemptions
- Calculate gross pay and properly make deductions
- Correctly identify, pay, and withhold taxes for employees
- Administer deferred compensation, cafeteria plan, sick pay, and other compensation
- Handle stock options, expense reimbursements, relocation, and other "expenses"
- Follow the proper policies, procedures, and documentation requirements for garnishments and levies
- Properly complete and file all required reporting requirements
- Correctly complete year-end requirements and establish year-beginning requirements
- Implement and maintain fraud, audit, disaster recovery, and record retention processes and procedures
In addition to ensuring that employees are paid correctly and on time, "Payroll" has numerous time and reporting requirements. The primary payroll areas include paychecks, reporting, operations, and management.
The answer to when should the last pay check be given is 'it depends'. Most states have laws mandating how soon a departing employee must receive his or her last pay check. In some, the final paycheck must be given at the time of termination; in others, employers have more flexibility with regard to the timeliness of giving the last pay check.
The final paycheck should contain the employee's regular wages from the most recent pay period, plus other types of compensation such as commissions, bonuses, and accrued sick and vacation pay. Employers can withhold money from the employee's last paycheck if the employee owes your organization.
Depending on the individual state's rules, the final paycheck can be paid via check, direct deposit (if an employee previously authorized direct deposit for wages), payroll paycard, or mailed.
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