When an employee leaves your company, there's more to consider than their last day of work.
I've seen how easily the small details surrounding a termination can get overlooked. And those details can create unnecessary payroll and compliance headaches.
If you're an employer in New Jersey, here are a few things worth knowing.
Final Paycheck: New Jersey generally requires employers to pay final wages by the regular payday for the pay period in which the employee leaves.
Form BC-10: Employers must provide this unemployment benefits information form when an employee separates from the company, whether they resign or are terminated.
Unused PTO and Sick Leave: Don't assume all unused time must be paid out. Vacation and PTO payouts generally depend on your company's policy or employment agreement. Unused NJ Earned Sick Leave generally doesn't have to be paid at separation unless your policy or agreement requires it.
None of these things is particularly complicated when you plan ahead. But overlooking them can lead to problems that could have been avoided.
My advice to employers: Before terminating an employee, speak with your payroll Rep.
A quick conversation beforehand can save a lot of time and frustration afterward.
For those of you managing employees, what's the one thing you always double-check before a termination?