Final Paycheck Legal Compliance & Employer Documentation Requirements For Terminated Employees

Webinar Background & Agenda :

Amid widespread recession fears, many businesses have been forced to reduce their workforce. During these challenging times, the last thing an employer needs is to violate final payout regulations under federal and state laws. Accurately processing a terminating employee’s paycheck can be complex. Employers must navigate a minefield of state and federal wage and hour laws, where even the tax withholding or deductions may change for this single payment. This raises numerous questions that must be addressed before issuing the final paycheck. Whether an employee resigns, is fired, or furloughed, final pay laws vary by state in 2024.

Here are some examples:

• If the employee is terminating voluntarily rather than involuntarily, would that change the date the payment would be due?
• If the employee is now deceased would that change the taxation of their final check?
• What if the employee owes vacation pay, can I take that back?
• What must be done if the terminating employee has a child support deduction?
• The terminating employee has not returned tools, equipment, or uniforms. How does that affect the final paycheck?

To ensure compliance all employers must know the answers to all the questions that might arise when processing an employee’s final paycheck.

Areas covered in this webinar:

• Recent federal and state wage and hour laws that affect termination payments
• State-by-state update of when and how to pay final paycheck
• Accrued vacation when it must be paid state-by-state review
• Proper handling of deceased employee payments
• State-by-state review for recouping negative vacation balance and overpayments from the employee’s final paycheck
• Deducting for missing or unreturned tools, company property, or uniforms
• Processing child support, tax levies, and creditor garnishments from the final paycheck in 2024
• A brief discussion of the effects fringe benefits can have on final paychecks including stock options and deferred compensation
• Year end and record retention concerns  

Mishandling an employee’s final paycheck is a leading cause of lawsuits against employers. Properly processing a terminating employee's paycheck requires careful attention to compliance with wage laws, especially since withholdings or taxation may differ for this payment. Beyond issuing the final paycheck, employers must also manage tax obligations, severance, and other benefits, while ensuring compliance with COBRA or the Stimulus Act regulations.

Instructor Profile: Dayna Reum is currently the Senior Director of Payroll and HRIS at a major medical center in Chicago.  Dayna has been heavily involved in the payroll field over 17 years.  Starting as a payroll clerk at a small Tucson company, Dayna moved on to be a Payroll Team Leader at Honeywell Inc.  During Dayna’s time at Honeywell she obtained her FPC (Fundamental Payroll Certification) through the American Payroll Association.  She also received several merit awards for Customer Service and Acquisitions and Divestitures. Dayna is no stranger to teaching she has taught at the Metro Phoenix American Payroll Association meetings and at the Arizona State Payroll Conference.  Topics including Payroll Basics, Global/Cultural Awareness, Immigration Basics for the Payroll Professional, Multi-State and Local Taxation and Quality Control for Payroll, International and Canadian payroll.   Dayna has her CPP (Certified Payroll Professional) through the APA.  She also serves on the National American Payroll Association on the National Strategic Leadership Task Force, Government Affairs Task Force (PA Local tax subcommittee).  Dayna has received a Citation of Merit for her service along with being a Gold Pin member of the APA.  Besides her payroll accomplishments Dayna is certified in HR hiring and firing practices and is a Six-Sigma Greenbelt.