This is a template, not legal advice. Laws differ by country, state and city and change often. Adapt it to your situation and have it reviewed by a qualified lawyer before you use it.
Before the last day
☐ Get the resignation in writing, or document the termination decision and the reasons.
☐ Check the final paycheck deadline in the employee's state. It can be the same day, the next payday, or a set number of days, and can differ for resignations and terminations.
☐ Work out accrued, unused PTO and whether your policy or state law requires payout.
☐ Plan the handover of work, files and accounts.
On the last day
☐ Pay final wages by the state deadline, including any PTO payout and commissions due.
☐ Collect company equipment, keys and badges.
☐ Remove access to systems. In Birch, terminate them with Revoke System Access on, which signs them out and blocks sign-in.
☐ Give any state-required separation or unemployment insurance notice.
Benefits
☐ If you have a group health plan with 20 or more employees, notify the plan administrator within 30 days so they can send the COBRA election notice. Smaller plans may be covered by state continuation laws.
☐ Tell the employee what happens to their 401(k), HSA, FSA and other benefits.
After they leave
☐ Send Form W-2 by January 31 of the next year to their last known address.
☐ Keep payroll records for at least 3 years, and Form I-9 for 1 year after the last day or 3 years after hire, whichever is later.
☐ Hold an exit interview if you use them, and record the reason for leaving.