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FAQs About Terminations in Zenefits

The last paycheck

The last paycheck includes all wages for hours worked through the end of the termination date. In some cases, this paycheck will include accrued but unused vacation, severance, and other payments.

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An employee's last paycheck includes all wages for hours worked through the end of the termination date. In some cases, this paycheck will include accrued but unused vacation, severance, and other payments.

If the employer's PTO plan accrues in advance, the employer may not be obligated to pay out the portion of PTO for the coming accrual period. However, negative PTO balances (i.e., time "borrowed" against future accrual) cannot be deducted from a final paycheck amount.

Employers should work with their payroll provider to calculate the correct amount for the number of days worked in the final pay period before termination, plus any PTO amounts that must be paid out, and minus any deductions.

Click here to view the Help Center page on FAQs about terminating employees in Zenefits.

  • If the employer's PTO plan accrues in advance, the employer may not be obligated to pay out the portion of PTO for the coming accrual period.
  • However, negative PTO balances (i.e., time "borrowed" against future accrual) cannot be deducted from a final paycheck amount.

Employers should work with their payroll provider to calculate the correct amount for the number of days worked in the final pay period before termination, plus any PTO amounts that must be paid out, and minus any deductions.

Administrators should contact their payroll provider for assistance in calculating the amount of an employee's last paycheck. Those with Zenefits Payroll should refer to these instructions.

Each state has specific laws governing final/last paychecks, but in general, this paycheck should include all wages for time worked up until the termination date.

Severance pay

Severance pay is additional payment (and potentially benefits) paid to the terminated worker upon termination. Severance packages may be predefined through agreements between the employer and the individual, or defined solely by the employer.

Terminated workers are not always entitled to severance pay upon termination, and employers are (in most cases) not legally obligated to provide severance. However, in certain circumstances (such as mass layoffs), terminated workers may be entitled to severance. Employers should always consult with their legal counsel regarding severance pay.

Zenefits currently does not support severance packages or any other payment at termination for companies who use third-party payroll provider. Those who have Zenefits Payroll, however, can add severance pay in both regular and off-cycle runs.

Cancel a scheduled termination in Zenefits

Yes, Administrators can cancel a scheduled termination up until one (1) day before the termination date. If it is less than one day before the scheduled termination, Admins should contact Zenefits Support.   

To cancel a scheduled termination, go to the employee's profile and select "Cancel Termination" in the top notification bar. 

When administrators have terminated an employee in error, follow the instructions on Accidental Termination of Employees

Can I terminate someone while they are setting up benefits?

Administrators can terminate workers even if they are still setting up benefits. If someone is terminated before benefits are set up in Zenefits, the administrator will need to provide additional information about the following items:

  • The types of coverage (medical, dental, and vision) that the worker is currently enrolled in
  • Whether or not the company will have COBRA Complete administer COBRA benefits (if eligible)

If the worker is enrolled in medical, dental, or vision coverage, the administrator will need to specify when they want the benefits to end. Administrators who choose to manage COBRA coverage will also need to provide some additional information to complete the termination process.

Does Zenefits handle unemployment benefits?

Zenefits does not administer unemployment benefits and is not involved in the unemployment benefits application process.

  • Unemployment insurance premiums are paid to the state as payroll taxes. Employers should register for unemployment account numbers with the appropriate agency in each state where employees live, and provide these numbers to payroll providers.
  • Upon termination, workers can contact their state's Department of Labor (or equivalent state organization) for more information on their eligibility and to apply for UI benefits.

Workers who quit are not eligible for unemployment.

How can I find out who terminated this worker?

Contact Support to determine which administrator or manager terminated a particular worker.

How to access Zenefits after termination

Workers who have been terminated in Zenefits can still access the Personal Information app in their dashboard. The Personal Information app will include any signed employment documents, agreements with the company, bank info, tax forms, benefits agreements, and basic contact information. If the company had payroll with Zenefits, then the worker can view paystubs and W2's. 

How to terminate someone who has worked, but not completed onboarding

If a worker has logged work hours, but has not completed the onboarding process, regardless of the hire date, you will have the option to Terminate them from the Actions drop down menu on their profile.

When should I revoke an offer instead of terminating?

In Zenefits, you should terminate a worker if they have worked at least one (1) day with the company. 

Completed offers may be revoked up until 30days after the start date. If it is more than 30 days passed the offer date, the offer must be terminated.

What is at-will employment?

At-will employment means that employers are able to terminate a worker at any time, with or without "just cause," as long as termination is not discriminatory.

Note:

  • Unless there is a prior contract established between the employer and an individual worker that defines the terms of employment, or the worker belongs to a union or certain types of civil service, most workers are considered at-will.
  • In general, employers may define the specific terms of at-will employment in an employee handbook that new hires must acknowledge when hired.

Zenefits does not provide legal guidance on the terms of employment or termination. Please seek legal counsel for any legal or compliance questions relating to at-will employment or termination.

When should I terminate a worker in Zenefits?

You should initiate the termination process in Zenefits after you've formally terminated the worker in person according to the company's termination policies. Termination in Zenefits simply updates the worker's status across all of Zenefits and with any third-party entities, such as insurance carriers and Flex Benefits providers.

  • Timely and accurate terminations are extremely important, since many of Zenefits' services and products end (e.g, insurance, FSA, Commuter, payroll) or start (e.g., COBRA) on the worker's last day of employment. Make sure to terminate a worker in Zenefits no later than their actual last day of employment (the effective termination date).
  • If the termination can't be entered on the their last day, above all, make sure to enter the termination in Zenefits within 30 days of the effective termination date. A termination reported later than 30 days can cause complications with the carrier and a worker's COBRA. If a termination is reported more than 30 days outside of the termination, please select a date within the 30 day limit and contact Support to process the termination with the correct date.

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Zenefits does not provide advice or guidance on terminating workers (e.g., acceptable grounds for termination) except with regard to beginning or completing Zenefits-specific processes, such as COBRA enrollment. Please consult legal counsel for advice on best practices for compliance when terminating workers.

When will terminations stop pushing deductions to payroll?

If a worker is terminated, their deductions or other payroll information will stop being pushed to payroll on their termination date.

Who can process terminations in Zenefits?

In Zenefits, administrators can terminate any worker, including managers. Managers can submit a termination request for their direct reports, and subordinates of those reports. The request is sent to the appropriate approver for review and approval. Aside from this approval step, the termination process in Zenefits is essentially the same for both managers and administrators.

Retroactively edit termination details

Administrators can edit termination classification and reason after the termination date has passed.

  1. Select the Directory app 
  2. Click on the terminated worker's name
  3. Select Termination Details
  4. Click on the edit icon and update the details

termination details

Please note that the Termination Date field cannot be edited from here, as it affects their final paycheck and health coverage. If you need to change the termination date recorded in Zenefits for any reason, please contact Customer Care.

Why wasn't this terminated worker removed from payroll?

You can check on the Terminations Details page to see whether or not you checked the box to have the worker removed from payroll in the termination flow.

How can I revoke a termination in Zenefits?

If a termination for someone needs to be rescinded, or someone was terminated in error, the termination needs to be revoked. 

If the terminated employee was not enrolled in any Benefits or FlexBenefits  through Zenefits, you can revoke the termination and make someone Active in Zenefits again:

  • View the terminated profile.
  • Click the “Revoke Termination” action in the banner.
  • Confirm that you want to revoke the termination.
  • The most recent termination details will be removed and the profile will be active again.

Please note: If the terminated employee enrolled in any benefits products, you will need to contact the Customer Care Support Team.

To update a termination date, similarly if the employee was enrolled in any Benefits products, please contact support to revoke the termination. Then you can submit the termination again with the correct date.

If the employee was not enrolled in any Benefits products through Zenefits, you can edit the Termination Date by:

  • View the terminated profile
  • Click “Termination Details” on the left 
  • Click the pencil icon to edit the termination
  • Enter in a new date
  • Confirm your change
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