Terminations are common in organizations across the world. The emotional aspect of handling a termination could be a little unsettling at times, depending on the kind of person terminated. Yet, there are a few financial issues that need to be sorted out in the proper manner when settling a terminated employee’s financial connections with the organization.
When termination has been carried out legally, meaning that legally justifiable grounds have been provided for a termination and due process has gone into it, the important element that comes up for consideration is settling the terminated employee’s finances.
The reason for termination is a major factor
There are several components of the employee pay that come into play when a financial settlement is being made after termination. The important ones among these include benefits like accrued holiday benefits, health insurance coverage, severance pay, and other perks and benefits like education allowance for children, etc. In many instances, the employer has to pay a few mandatory benefits to terminated employees, which again is based on the State and also on the employing organization’s policy towards terminated employees.
Different States have different rules for what benefits a terminated employee receives. In some States, employers are bound to pay some benefits. In some western countries, the State also plays a role in the terminated employee’s finances, making some kind of temporary allowance till the next employment is found. In some instances, a few benefits may simply pass over to the next employer. Pension, payment for vacation and health insurance under the terms of COBRA are some of these. This is just one of the aspects of financial settlement that a terminated employee goes through.
Almost invariably, the causes for dismissal play the deciding role in what kind of financial settlement a terminated employee is entitled to. An employee who is fired for reasons of performance rather than for acts of dishonesty is likely to get relatively more benefits than one who has been terminated for misconduct.
Learn the elements of financial settlements for terminated employees
All the intricacies of the financial settlement for a terminated employee will be discussed at a webinar that is being organized by TrainHR, a leading provider of professional trainings for the human resources industry.
At this webinar, Dayna Reum, who is Payroll Tax Manager at PetSmart Inc., will offer complete understanding of the topic of the right method of financial settlement for terminated employees. In order to gain a thorough perspective of this topic, please register for this webinar by visiting http://www.trainhr.com/control/w_product/~product_id=701664LIVE?wordpress-SEO .
This webinar has been approved for 1 HR (General) recertification credit hours toward aPHR, PHR, PHRca, SPHR, GPHR, PHRi and SPHRi recertification through HR Certification Institute (HRCI).
Issues facing employers
The important learning this webinar will offer is on the issues employers face when paying terminated associates. Dayna will review everything to final pay to stock options and payments to employees that may occur years after they terminate. She will explain the matter of paying the terminated employee’s legal settlements. Another important learning this webinar will impart is the tax implications for terminated employees, and how to handle taxes for several different types of termination pay.
Given the complex nature of laws concerning payments in several states in dealing with terminated employees; payroll has to understand the complete nuances of these laws. If payroll falls short of meeting compliance requirements, it lands the organization in trouble.
At this webinar on handling terminated employees’ finances properly, those concerned with this aspect, such as Payroll Professionals, Compensation Professionals, HR Professionals and Benefit Professionals will gain insights into how to deal with this issue in a legally compliant manner.
At this session, Dayna will cover the following areas:
- Review of different types of term pay from vacation pay to golden parachute payments.
- Discussion around Stock options and deferred compensation after termination
- Taxation concerns in regard to payments made to terminated employees
- Timing of final pay for terminated employees including state law requirements
- Yearend concerns
- Discussion around death payments paying and reporting
- How to handle legal settlements
- Record Retention Concerns
- Best Practices.