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This article addresses specific compliance issues around terminating employees in Massachusetts. If you'd like to know how to terminate an employee within Justworks, please visit Terminating Employees.
Massachusetts law requires that employees be paid their owed wages at the time of termination if termination is involuntary. If an employee resigns, then the final pay can be paid out with the next regular payroll.
For an involuntary termination, best practice is to provide employees with a physical check for all outstanding wages upon termination. It is possible to schedule this final check in advance to be paid via direct deposit on the termination date, but can be tricky for a variety of logistical reasons. All funds paid via physical check should be recorded in Justworks for tax purposes.
Employers are also required to pay out any accrued, unused vacation. All vested vacation must be paid to the employee as wages, at the final rate of pay.
Required separation notices
An unemployment insurance pamphlet (How to Apply for Unemployment Insurance Benefits (Form 0590-A) MUST be provided to all separating employees, regardless of the reason for the separation.
If you’re having trouble completing the online account setup process, please contact the state’s customer service line for assistance or their website.
Employers with 2-19 employees offering fully insured group health care benefit plans must offer COBRA continuation coverage to covered employees and qualified dependents upon separation of employment. See Massachusetts Continuation of Coverage for notice and election requirements.
Resources
- Mineral: Massachusetts Separation and Massachusetts Termination*
Notes
*Be sure you’re logged into your Justworks PEO account with administrative permissions to access Mineral.
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.