Final settlement for a separated employee
Overview
Employee separation is a key HR process, and Zenoti makes it easier to manage terminations employee deactivations by ensuring accurate record updates, compliance with state laws, and payroll settlements. If your business uses Zenoti Integrated Payroll, you’ll employees receive final settlement estimates and state-specific guidance on payout deadlines.
This article will walk you through:
How to terminate an employee in Zenoti
Managing final settlements
Handling payroll for terminated employees
Terminate an employee
Navigate to Configuration > Employee > Manage Employees.
Select the employee’s profile.
Click Employment Termination.
Provide a reason for termination (Employee Quit or Terminated by Business).
Enter the termination date.
Verify or update the employee's contact and address details (for tax documents like W2).
Click Proceed.
Final settlement process
If Zenoti Integrated Payroll is enabled, you will be prompted with required payout timeline as per your state laws. You will have two options:
Pay Later – You can complete employee separation process and pay employee later - either through regular payroll along with other employees or through an off-cycle payroll.
Pay Now, Using Off-Cycle Payroll – Initiates the final settlement process immediately.
Final Settlement using the Pay Now, using Off-Cycle Payroll option:
You will be directed to the Final Settlement screen where you need to provide values for the earnings like hourly pay, commissions, and tips.
Review the payment method (For example, direct deposit).
Confirm earnings, deductions, and taxes.
Click Submit..
View terminated employee details in payroll
After termination, the employee’s record will still be shown in regular payroll for the recent pay-period.
The terminated employee’s record is labelled and appears at the top of payroll records.
You can click on Termination Details to view the recent payout amount if any and decide whether to remove the record or add any additional earnings
Impacts and considerations
Zenoti provides termination payout deadlines based on your state’s labor laws but compliance to the laws is the business’s responsibility.
Keep employee contact details updated for W2 or 1099 statements.