What's covered in this guide?
What is a termination pay run?
A termination pay run lets you pay a terminated employee on their last day through same-day direct deposit, without having to write a check. When you terminate an employee and set their last day to today, a prompt appears at the top of their staff profile.
Click Create Termination Pay Run and Workforce builds the pay run, pulls in their hours, and takes you straight to it. Post it before 1:00 PM Central and the funds arrive the same day.
Requirements
Termination pay runs are available when all of the following are true:
The employee's last day is set to today
The employee is set up for direct deposit
Your organization uses Georgia Banking Company as its payment processor
Your processing window is set to Same Day, One Day, or Two Day.
Three Day is ineligible.
The current time is before 1:00 PM Central Time
This is due to same day payment deadlines set by the Federal Reserve
Reminder: We cannot pay out the same day on Federal Bank holidays. If a termination pay run is posted on a banking holiday, they will be processed the next banking day.
Before you start: Approve the Final Timesheet
If you haven't terminated the employee yet, see Terminating Employees first. Make sure you set today as their last day, or the termination pay run option won't appear.
For hourly employees, all shifts on their final timesheet must be approved before you can create the pay run.
If any shifts are still pending, a Go to timesheet link appears on their profile alongside the Create button. Approve the shifts and return to the profile when done.
Creating a Termination Pay Run
Go to the terminated employee's staff profile.
At the top of the profile, click Create Termination Pay Run. This button only appears when today is the employee's last day and it is before 1:00 PM Central.
Employee with timesheets: a progress screen appears while the timesheet is added to the pay run. Don't close the window. Once it finishes, you'll be taken to the pay run automatically.
Employee without timesheets: you'll be taken straight to the pay run.
Review the pay stub and confirm the earnings are correct.
Post the pay run before 1:00 PM Central.
Note: Termination pay runs have a separate exposure limit of 5% of your daily exposure limit (ex: an exposure limit of $100,000 will allot $5,000 of that to termination pay runs). If you exceed that amount, please contact support.
Terminating Multiple Employees on the Same Day
If two or more employees from the same pay group are terminated on the same day, Workforce combines them into a single termination pay run automatically. Click Create Termination Pay Run on each employee's profile and they'll all be added to the same pay run for that pay group.
Note: Employees in different pay groups each get their own termination pay run.
Issues Generating/Posting a Termination Pay Run
The employee still has unapproved shifts
All shifts on the employee's timesheet must be approved before you can create the pay run. Click the Go to timesheet link on their profile, approve the shifts, and return to try again.
There's already a draft pay run for this pay group
A termination pay run can't be created while another draft pay run exists for the same pay group. Post or delete the existing draft first. See Process an Out-of-Cycle Pay Run for help managing existing drafts.
There is a termination pay run from a previous day that was never deleted
Workforce will redirect you to that stale pay run. Delete it, then return to the employee's profile to create a new one.
Termination exposure limit exceeded
Termination pay runs are subject to a daily limit separate from your regular ACH exposure limit. If the pay run exceeds this limit, contact your payroll team to arrange an alternative payment method for the remaining amount.