This article explains how US Payroll clients can initiate terminations or resignations for their direct employees.
The process of termination, commonly referred to as "offboarding", is different depending on the employment type.
Before you begin:
Please review our article on Mutual Termination Agreements, which is a common practice that enables an employer to terminate an employee while minimizing the risk of litigation.
In this Article
Terminating a US Payroll employee
✅ Step 1 – Select the employee you want to terminate
Select the People tab on your home page and then click on the employee's name to open the summary page.
✅ Step 2 – Click Schedule Termination to start the offboarding process
✅ Step 3 – Fill out your desired termination timeline
Select the dates for the last day of work and your desired contract end date.
- Last day of work: This is the last day that the employee will be performing their job. Usually, their access is removed on this day.
- Desired contract end date: The last legal day of employment. The employee will be paid until this date even if they are no longer performing their job.
Deel may adjust your requested contract end date after an internal review of local labor laws.
✅ Step 4 – Add termination details
Select if the employee termination is a voluntary resignation, or involuntary.
You may add supporting documents if needed.
If you select an involuntary termination, you will be asked to provide a reason for the termination.
If the employee being terminated is a manager with direct reports, you will be prompted to select a new manager for those reports.
✅ Step 5 – Finalize offboarding payments
You will see the number of vacation days the employee is entitled to annually.
Enter the number of time off days that the employee used for the year, up to the current date.
You can also add severance pay, either as a Cash Value or Time Value.
- Cash Value: Enter the desired amount of money for the severance payment, which is in addition to the mandatory statutory severance payment.
- Time Value: You can add a time value severance measured in days, weeks, or months.
Note: If you have Deel Time Off enabled, Time Off data will be synced automatically.
✅ Step 6 – Review and submit the termination request
Deel will review your request details and your desired contract end date.
We may adjust your requested contract end date due after an internal review of local labor laws.
When your termination request is confirmed, you will see a banner on the employee's contract summary page.
Frequently Asked Questions
[ACCORDION] How do I process severance for a terminated employee?
If you pay a lump-sum severance to employees, the severance needs to be run as an off-cycle with the same check date.
The severance should be run as an off-cycle if:
- The client does not pay a lump-sum severance AND
- The employee’s termination date does not coincide with the regular payroll pay date