Terminating an Employee

Terminating an employee

To terminate an employee, navigate to the employee's profile under Manage > Employees, click the "Schedule Termination" button towards the top right of the screen.

When an employee has been terminated, they will appear under a "Former Employee" field in the employee list. They will also no longer be searchable in your account.

Terminated employees will still have access to their Justworks and will still be able to receive payments. Terminated admins will default to still having access to admin privileges until 2:00AM (EST) after their termination date. However, still existing admins can revoke these privileges at any time.

Effective dates

When you terminate an employee, you'll be asked to choose an effective date. This date will determine their final payment as well as when their benefits will end. Terminated employees that have benefits will receive those benefits until the end of the month following their effective termination date.

Ex: If an employee is terminated on June 23, their benefits will be effective until June 30.

Voluntary vs involuntary termination

As part of the termination process, you'll be asked if the termination was voluntary or involuntary. Justworks will use this information when administering Unemployment and COBRA benefits. It’s best to be as specific as possible when entering in the termination reason, to avoid any need for clarification.

Examples of Voluntary: Employee quits, Retirement, Employee strike, Death

Examples of Involuntary: Employees is fired, Failure to renew a contract, Absence from work, Laid off

Once you enter in the termination reason, you will see the amount of the employee’s last paycheck and the day it is scheduled to be paid. Please keep in mind that if an employee is terminated in the middle of a pay period, their payment will be prorated as such, but the payment will still be processed with the rest of your company’s regularly scheduled payroll for that pay period.

COBRA Severance 

Employers on Justworks who have terminated employees that are eligible for/or enrolled in COBRA through WageWorks have the option to contribute to the employees' COBRA premiums directly through Justworks. Please contact Justworks support to set up a COBRA severance agreement for the eligible employee. Employers must provide the terminated member's name, the duration of which the company will pay, and the amount. Justworks will bill your company directly and handle setting up employer-paid COBRA in WageWorks.

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.