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Managing termination pay: Beware trouble ahead

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in Centerpiece,Office Management,Payroll Management

employee terminationWhat goes into a final paycheck, and when that check must be given to a terminating employee, is strictly a state issue, said Hope Williams, CPP, the American Payroll Association’s director of training, and James Paille, CPP, director of operations at Thomson Reuters.

Williams and Paille helped attendees at the APA’s annual Congress understand termination pay.

I quit! Voluntary terminations

Companies usually handle final pay for involuntary terminations just fine. They’re not so good with voluntary terminations, said Paille.

One way to make things easier, Williams said, is to ensure that the company has a standard policy. She suggested implementing a workflow by gathering documentation and knowing your final pay time line. First-level managers don’t want to complete employees’ termination paperwork, she pointed out. Make them do it anyway.

You can usually take all the regular deductions from a final check, but there’s more t...(register to read more)

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