How to run a Termination Payroll using GoCo's Embedded Payroll

Step-by-step guide to accurately process final paychecks and manage employee Terminations in using GoCo's embedded payroll with Gusto

Step 1: Terminate the Employee

If you haven't already, you’ll need to terminate the employee in GoCo. Here’s how:

1. Navigate to the employee’s profile.
2. Click the "Actions" button in the top right corner of their profile.
3. Select "Terminate" to initiate the termination process. This will take you through the termination wizard, guiding you through the necessary steps.
4. At the end of the wizard, you’ll be ask continue to the employee's profile, to begin issuing a final paycheck by running a termination payroll.
   

   Additionally, admins will receive an inbox notification of the termination and issue a final paycheck. Clicking on "Issue Final Paycheck" will immeditaly take you to step 3.  If you want to calculate what will be on the final paycheck prior to issuing please refer to step 2. 

    

Step 2: Calculate the Final Paycheck [optional] 

After terminating an employee, you can visit their profile to find all of their termination information. If you expand the termination info card, you’ll see a "Final Paycheck Calculator" button at the bottom. Click to open the calculator.

In this calculator, you can review:

• Hours Worked
• Time Off Liabilities (with an option to adjust)
• Benefit Deductions

This calculator is available both before and after the termination is finalized, allowing you to double-check and adjust the final amounts as needed.

Step 3: Issue the Final Paycheck

Once you’ve completed the termination process, you’ll notice a banner at the top of the employee's profile with a link to give them their final paycheck.

• Selecting the "final paycheck" button will direct you to a new screen to initiate the final paycheck process.

Click "Start" to begin.

1. Choose from 3 different termination payroll options:

Depending on which option you choose you may see different warning messages before being able to continue.

1. • Pay Immediately via Paper Check
     
     • This option routes you to a GoCo Embedded pay run to immediately generate the manual check. You will see the employee set to paper check. 
     • When submitting the pay date, paper checks can be generated same day or the next day. 
     • After submission, a printable file will be provided, and the company will be charged for ER taxes
     • The employee will not show up on your next scheduled pay run.
   • Pay in 2-3 Business Days via Direct Deposit
     
     • By choosing this option, you will receive the following message:
     • This option routes you to a GoCo Embedded pay run to start an unscheduled pay run for a future date.
     • When submitting the pay date direct deposits must be scheduled on at least a 2-day pay date.
     • The employee will not show up on your next scheduled pay run.
   • Pay on the Next Scheduled Payroll
     
     • By choosing this option, you will receive the following message:
     • There is no immediate action for you.
     • You will see the employee on the next scheduled pay run.
2. Issue payment of the final paycheck by clicking "Start Termination Payroll".
3. Begin by reviewing the details for this final paycheck that GoCo pulls over & make any changes needed, and "Continue to payroll".
   
   

Step 4: Manage Earnings and Severance in the Termination Payroll Run 

In the termination payroll screen, you'll need to review and manage specific details:

• Earnings: Note that salaried employees cannot have regular earnings in an off-cycle termination payroll. If this applies, you’ll see a "Needs Review" item in the termination payroll. To the right of the screen in the employment & compensation wizard, enter the actual hours worked during the pay period.
• PTO Liabilities: If PTO liabilities exist, they should appear under earnings as a payout amount. If needed, you can adjust or add the payout manually in the payroll grid to ensure accurate compensation. Click the "Add Job or Earning" drop-down menu and select from your choices of  "Personal Leave Time Off, Sick Leave Time Off, etc.".

• Severance: If severance pay is owed, Employment Admins will need to add this manually. In the payroll grid, click the "Add Job or Earning" drop-down menu and select "Severance." Enter the amount owed.

Additional Information

• Deductions: The deductions in the final paycheck depend on the employee's benefit policy. For example, benefit coverage may end on the termination date or at the end of the month, which will impact the amount deducted. Review these details in the final paycheck calculator or in the Benefits module if necessary.

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If you have any questions or encounter any issues, feel free to reach out to our support team for assistance. 💚