How do I report an employee termination?

When an employee is terminated, the employee must be reported by the client as terminated in the DailyPay Portal. If you would like to temporarily disable and employee, please see How do I temporarily disable an employee account when their employment status is unclear? 

Why do I need to report an employee termination? 

To report an employee termination, visit the employee’s Account Details in the DailyPay Portal. Once the employee is marked as terminated, and if the employee has unreconciled transfers, you will be prompted to select how to distribute the employee’s final pay. If the employee does not have any unreconciled transfers, you will not be prompted to select the employee’s final pay. 

Please follow the instructions below to terminate and report final pay in the DailyPay Portal: 

1) Search for and select the employee from the Users list.

2) Click the “Report Termination” button on the bottom right hand corner of the Account Details page

3) Click ‘Report Termination’ on the pop-up. By doing so, the employee has been marked as terminated in DailyPay. The employee will be prevented from making any transfers and their available balance will stop accruing earnings. 

4) Select the final payment method

• No change (final pay only through direct deposit to DailyPay account)
• Paper check (deductions allowed with invoice request from DailyPay)
• Paper check (no deductions allowed)

If “No change” is selected, the employee will receive their final payment to the direct deposit account on file, following the typical payday schedule.

If “Paper check (deductions…)” is selected, a final pay calculator will appear. 

• Insert the final net pay on the first line. Any DailyPay transfers and associated transfer fees will be deducted from the final net pay to calculate the paper check value. In the example below, the client will write a paper check to the employee in the amount of $195.00.
• Remittance: 
  • If “Invoice” is selected, an invoice will be sent to the client within the next 2 weeks for the amount of unreconciled transfers and fees. 
  • If “DailyPay Account” is selected, the amount of unreconciled transfers and fees will be sent through the user’s DailyPay account for DailyPay to recoup.

“Paper check (no deductions allowed)” is selected if the employee’s final pay must be sent without deductions due to some state/providence laws. 

Calculate Final Pay

In the case that an employee has been marked as terminated before an admin reports the final pay method, DailyPay Portal admins can still visit the employee’s account details to select final pay details. 

1) Search and select the employee from the User’s list. 

2) Click the “Calculate Final Pay” button on the bottom right hand corner of the Account Details page

3) Select the final payment method. Follow the instructions listed under #4 above.