Please note: this article is about the Justworks Payroll product. Not sure which product you're using? Check out: How Do I Know Which Justworks Product I Have?
Companies who have paid employees at any time during the calendar year will typically need to provide year-end forms. This includes terminated employees. If your company has made a payment to a now terminated member during the same calendar year in which your company is signing up with Justworks Payroll, that former team member will need to have a profile in Justworks Payroll.
More specifically, you will need to add any former team members listed in the payroll history reports your company uploads during the onboarding process. These former team members need to be entered in the Justworks Payroll system so that their payroll history can be recorded, and a W-2 or 1099 can be generated for them at the end of the year, and company returns will be comprehensive for all payroll liabilities made throughout the year
How to Add a Terminated Member
Admins have two options for adding terminated members to Justworks Payroll. Steps for both methods can be found below.
1. Adding Terminated Members Through Onboarding Tasks
If you are at the start of the onboarding process, you will be able to click on the ‘Tell us about your payroll history’ task on your Justworks Payroll dashboard:
You will then be prompted to enter a few details about your company’s payroll history within the current calendar year as well as asked to add your company’s current members.
Then, you will be prompted to add your company’s terminated members who received payments within the current calendar year.
You will need to fill in terminated members’ details, such as their home address and SSN, so that their year end forms are accurate.
Once this information has been saved, the terminated member will be set up in the system without having been invited to join the platform as a current member of your team.
2. Adding Terminated Members Through Team Management
If you forget to add any terminated members with payroll history during your initial onboarding steps, you can still add terminated members to your company’s account.
To start, go to the ‘Employees’ or ‘Contractors’ tab depending on the type of terminated member you need to add. Once on that page, choose ‘Terminated’ from the top menu.
Then, you will see a button in the upper right-hand corner labeled ‘Add terminated member.’
Once you click this button, you will be prompted to enter and save the terminated member’s information.
Completing these steps will ensure the former team member is in the Justworks Payroll system so our team can record their payroll history, without sending the terminated member an invitation email.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.