How to handle PTO liability for terminated workers
Zenefits automatically displays the final PTO balance at the end of the termination flow, and in the email sent once the termination flow is completed. Not all states require that PTO be paid out to a departing worker.
- To view current PTO liability (if any) before terminating them, see these instructions.
- For workers on a plan that does not accrue in advance, the liability amount listed in the termination flow may not match the amount on the PTO History page until the actual day of termination.
- Here's an explanation of how Zenefits determines PTO liability for terminated workers based on the type of PTO plan they have.
- PTO liability doesn't sync to payroll at this time.
Some things to keep in mind about PTO liability:
- Zenefits will list the amount owed for unused PTO hours regardless of whether or not this is required by the company's state law. Employers should check with legal counsel to determine their responsibility, if any, to pay out PTO liability.
- Workers with a negative PTO balance (i.e., those on a limited plan that permits borrowing of unearned time) will have $0 PTO liability. Except in rare circumstances, employers cannot deduct a negative balance from a final paycheck. Please consult legal counsel for more guidance.
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