Menu
Ace Plus Tax Resolution
Tax Relief Services Los Angeles
  • Home
  • Tax Problems
    • Tax Resolution
    • Owing the IRS Money
    • Filing Prior Years Returns
    • Help with Your IRS Audit
    • When Your Spouse Owes the IRS
    • PPP Loan Forgiveness Assistance
  • Tax Relief Services
    • Offer in Compromise
    • Installment Agreement
    • Payroll Tax Relief
    • Penalty Abatement
    • Release of Wage or Bank Levies
    • Lien Relief
    • Currently Not Collectible
    • Bankruptcy Dischargeability Analysis
    • Other Services
  • Reviews
  • Articles/Media
    • Articles/News
    • Media and Press
    • IRS Operational Status
    • Blog
    • Resources
  • About
    • About
    • Send Us Your Referrals
  • Contact
  • (213) 600-7388
September 10, 2020

What to Do When an Employee Is Terminated

James Cha, CPA, CTRS Business Tips

Every company should have a strict process to follow when an employee leaves the company, no matter what type of termination it is – voluntary or involuntary. Here’s a checklist you can use to compare to your own process so that you can either confirm you’re on the right track or add some ideas to improve your current methods.

1. Collect the resignation letter.

While so many things are remote these days, you MUST get the employee’s resignation letter in writing and signed by them.  If they don’t supply one, create a form they can sign that includes the reason for termination.

If you initiated the termination, have the employee sign the notice of dismissal.

This is not only important for general human relations records, it’s also important this year for any Paycheck Protection Program forgiveness documentation if the employee turned down a hire-back request. There may also be a requirement to submit the paperwork to your state’s unemployment office.

2. Handle legal and benefits issues. 

  1. Collect any company advances owed by the employee.
  2. Ask the employee if they have any final expense reports to file.
  3. Remind the employee that certain legal requirements, such as confidentiality clauses and noncompete agreements must be upheld after employment.
  4. Review insurance options such as COBRA.
  5. Let the employee know how to access their 401(k) and other benefit plans.

3. Update the payroll system and cut the final paycheck.

Compute PTO and vacation balances due the employee.  Calculate severance pay. Cut the final paycheck, incorporating those items.

Review the paycheck amounts with the employee, and ask them for a forwarding address.

4. Collect company property.

The employee should turn over their computer equipment, including laptops, monitors, mice, keyboards, PCs, Macs, phones, beepers, printers, drives, and scanners. Don’t forget to ask for keys, business cards, name badges, security badges, gate and garage door openers, uniforms, and tools. Oh, and company cars or trucks.

5. Revoke computer access. 

Any user accounts held in the employee’s name should be revoked. Many passwords may need to be changed.  Their email address should either be forwarded to someone else who can answer the emails, updated with an autoresponder, or revoked altogether.

Voice mail and their phone extension should also be re-routed.  Take the employee’s name off of any internal distribution list and remove them from the About page of your website.

6. Hold an exit interview.

The business owner should hold an exit interview with the employee if they are leaving voluntarily.  Ask questions such as these:

  1. Why did you decide to start searching for a new job?
  2. Was there anything we could have done to keep you employed here?
  3. If you could change one thing about your job, what would it be?
  4. Could you describe your relationship with your direct supervisor?
  5. Would you consider working here again?

7. Communicate this change to your staff and customers. 

Let your staff know immediately after the employee leaves that they will not be coming back. Don’t go into detail about the termination; that information is private.

If the employee was involuntarily terminated, assure your staff that their jobs are safe (if they are) so they don’t ruminate or spread false rumors.

If the employee worked with customers, each customer should be notified and given the name of the new staff member that will be handling their issues.

Follow these steps to protect your company when an employee is terminated.

Six Fun Ideas to Bring into Your Marketing Cool Tech Tools: Easy Ways to Create Video Graphics

Related Posts

Business Growth, Business Tips, Money Management

The 13-Week Cash Flow Forecast

Business Growth, Business Tips

Building a Continuity Plan for Your Business

Business Tips, Cool Tech Tools

Cool Tech Tools: Easy Ways to Create Video Graphics

Categories

  • Accounting (22)
  • Accounting Software (2)
  • Articles/News (17)
  • bookkeeping (1)
  • Bookkeeping Tips (5)
  • Business Development (12)
  • Business Growth (7)
  • Business Tips (56)
  • Cool Tech Tools (13)
  • Cost-Saving Tips (1)
  • Customer Service Tips (6)
  • Decision-Making Tips (2)
  • Expense Reduction Tips (3)
  • Finance Management (1)
  • Management Tips (8)
  • Marketing Tips (1)
  • Money Management (1)
  • Newsletter (83)
  • Payroll Tips (2)
  • Personal Development (5)
  • Profitability Tips (9)
  • Tax (6)
  • Tax Relief (10)
  • Tax Resolution (2)
  • taxes (8)
  • Technology (1)
  • Time Management Tips (4)
  • Uncategorized (1)
  • _COVID-19 (10)

Recent Posts

  • The IRS’s Incorrect Notice & Things To Watch Out for When Settling Back Taxes
  • Tax Filing Season Kickoff 2021: Can’t Pay Taxes
  • Wrapping Up 2020
  • Small Business Owners Must Create Strategies To Maximize Tax Benefit from New PPP Loans & Other New Tax Provisions
  • The Power of Listening

Monthly Archives

  • Ace Plus Tax Resolution – A Tax Relief Services Firm
  • I Need Tax Help
  • Remedies
  • Reviews
  • Resources
  • About
  • Contact
  • Privacy Policy
Ace Plus Tax Resolution is a BBB Accredited Tax Negotiator in Los Angeles, CA

Contact Us

(213) 600-7388

James@AcePlusTaxResolution.com

Business Hours
Mon-Fri: 8:30 AM–5:30 PM
Some Sat: 9:00 AM–12:30 PM

3435 Wilshire Blvd Suite 1750, Los Angeles, CA 90010, United States

wite rectangular box with gray microphone graphic, white text on red background and large blue text as featured on media and press

Ace Plus Tax Resolution is a BBB Accredited Tax Negotiator in Los Angeles, CA
© Ace Plus Tax Resolution 2021
Ace Plus Tax Resolution | Site Design by Accelerator Websites