When an employee leaves your company, making sure their final paycheck is correct is important. But in New York, there are a few other requirements employers need to keep in mind.
Here are four things worth checking before an employee leaves.
1. Final Paycheck
New York generally requires employers to pay all wages owed by the regular payday for the pay period in which the employee worked. If the employee requests it, the final wages must be mailed to them.
2. Written Termination Notice
Employers must provide written notice within 5 business days of termination, stating the employee's termination date and the date their benefits will end.
3. Don't Forget Form IA 12.3
New York requires employers to provide a completed Record of Employment (Form IA 12.3) when an employee separates from employment, including when they resign. This form provides information employees need when applying for unemployment benefits.
4. Unused Vacation and PTO
Don't automatically assume unused vacation or PTO must be paid out, or that it can be forfeited. New York generally looks at the employer's written policy or employment agreement. Make sure you review it before calculating the final paycheck.
None of these steps is particularly difficult when you plan ahead. But forgetting a required notice or overlooking earned compensation can create problems that could have been avoided.
My advice to employers: Contact your payroll Rep. before terminating an employee.
A little preparation can save a lot of frustration later.
For those of you handling employee terminations, do you have a checklist to make sure nothing gets missed?