Terminating an Employee

Purpose

Terminating an employee in UZIO closes their employment record and starts the automatic clean-up across time off, time tracking, benefits, and payroll. The termination itself pays nobody. Final pay is issued by the next payroll you run. This article covers what to settle before you terminate, the termination itself, what UZIO does on its own, and what the former employee can still do.

Who can do this: users whose role includes permission to terminate employees. The Employer Administrator has it by default, and a custom role can also grant it. Approving the payroll that pays the final check is a separate permission. See Understanding Roles and Access.

Before you terminate

• Check the username. If the employee signs in with their work email, change it to a personal address first. They keep web access to pay stubs and W-2s after they leave, and password recovery goes to that address. See Viewing and Editing Employee Usernames. The termination workflow alerts you when this applies.
• Check the payroll calendar. Work out which pay run will carry the final check before you enter the termination, not after. See The final paycheck below.
• Settle the termination date. A termination cannot be reversed in the portal, and the date drives proration, the PTO payout, and the benefit coverage end date.
• Decide whether the employee is notified. UZIO can email the employee about the change in employment status and their ending coverage.

Terminate an employee

1. Click Employees in the left navigation and find the employee.
2. In the Actions menu for that employee, select Terminate Employee.
3. Complete the form and confirm.

How the termination date is applied

• Today or a past date. The termination is processed immediately. The employee's status changes to Terminated and the clean-up below starts at once.
• A future date. The termination is scheduled. The employee stays Active until that date, keeps clocking in, and stays on payroll. A scheduled job applies the termination when the date arrives, and the clean-up runs then. Nothing is cancelled or paid out in the meantime.

A backdated termination does not un-pay anything already paid. If the employee was paid for days after the backdated termination date, correct that on a later run. See Running a Special Payroll.

What UZIO does automatically

The following happens when the termination is processed, and not before.

Time off

• Approved time off dated after the termination date is cancelled, as is every not-yet-approved request regardless of date. These show in Time Off History as System_Cancelled.
• Time off policy assignments go inactive, so accrual stops.
• Each policy with Balance Payout on Termination? = Yes produces a PTO Balance Payout earning on the payroll that pays the employee. See Automatic PTO Balance Payout on Employee Termination.

Time tracking

• Any running time entry is clocked out.
• Unapproved pay periods are approved as the system user, and pending employee change requests are rejected with the reason "Employee Termination". No rejection email is sent. Approval is not the same as syncing. The hours still reach payroll only when the pay period is synced. See Approving Timesheets and Syncing Hours to Payroll.
• The employee's kiosk PIN and biometric (face) data are deleted, so they can no longer clock in at a Time Kiosk or on a shared device.
• Shifts cannot be created for an employee whose termination date falls before the shift date. See Creating, Publishing, and Deleting Shifts.

Payroll

• The employee is removed from any future draft pay run. They are re-created in an in-progress draft whose pay period contains the termination date, with pay prorated to the termination date and the PTO payout added.
• They cannot be excluded from the next regular payroll. UZIO enforces this so that a terminated employee is not left unpaid.

Benefits

• Their benefit enrollments are ended, with a coverage end date for each plan. What UZIO does, and what your broker and COBRA administrator do, is set out in What Happens to Benefits When an Employee Is Terminated.

Notifications

• You receive a confirmation email listing the plans the employee was enrolled in and each coverage end date.
• Your broker is notified of the termination and the coverage end date.
• The employee receives an email about the change and their ending coverage, where you chose to notify them. That email tells them their UZIO access stays active. A Death termination sends no employee email.

The final paycheck

There is no automatic final pay run. UZIO prepares the figures. You still run and approve a payroll to pay them.

• The next regular pay run is the normal route. The terminated employee is already on it, prorated, with the PTO payout.
• A Special Payroll is for when the next regular pay date falls after your state's deadline. See Final Paycheck Laws by State for the deadline that applies to you.

Before you approve either run:

• Check the days worked, the PTO Balance Payout line, and the time off the employee took in the final period. On a special payroll, confirm the time-off hours on the grid and enter anything that is missing.
• Review the Payroll Action Center findings. Three of its checks are about terminations: a PTO balance payout flowing through the run, a terminated employee with an outstanding unpaid PTO balance, and a terminated employee leaving with outstanding deduction arrears. Arrears are far harder to collect once the last check has gone out. See Understanding Automatic Deduction Arrears.

After termination

• The record stays. The employee remains searchable under Employees, and Actions > View Termination Information shows the termination date, reason, and details.
• Web portal access continues for an employee who had already registered. They sign in as before to reach pay stubs, W-2s, and their benefits history. This is why the username fix matters. Password recovery goes to the username address.
• Kiosk access ends when the PIN and biometric data are deleted.
• An employee who never registered cannot register after termination. UZIO refuses the registration with "You are not allowed to login/register as an employee on this exchange. Please contact your employer for further details." Sending them a registration link will not work. Send the documents they need, such as the final pay stub or the W-2, directly.
• W-2s. Terminated employees who can sign in collect the W-2 from the portal in January like anyone else. For those who cannot, send it to the address on their record. See Year-End W-2s and Tax Documents.

Rehiring someone you terminated

Do not create a new employee record or a prospect for someone who already has a UZIO record. Rehire the existing record instead, so that service dates, history, and benefit eligibility carry over.

• Rehiring reactivates the existing employee record and their time off policy assignments.
• Leave still dated after the rehire date is cancelled.
• Whether PTO balances restart at zero depends on your company's configuration. Check the employee's Time Off History after the rehire and before their first new accrual. See Automatic PTO Balance Payout on Employee Termination.
• The employee receives a welcome-back email.
• A rehire needs a new Form I-9 or a Supplement B, and a new E-Verify case where the earlier one can no longer be used. See Reassigning a Form I-9.
• Benefit eligibility on a rehire follows your plan rules and waiting periods. Confirm it with your broker.

Related articles

• What Happens to Benefits When an Employee Is Terminated
• Final Paycheck Laws by State
• Automatic PTO Balance Payout on Employee Termination
• Running a Special Payroll
• Viewing and Editing Employee Usernames