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

Frequently Asked Questions 

Terminating a US Payroll employee

✅ Step 1 – Select the employee you want to terminate

Select the People icon on your home page and then select the All People tab and 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 the desired contract end date:

• Last day of work: The last day the employee will be performing their job. Typically, 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 the requested contract end date after an internal review of local labor laws.

Click Continue.

It may be the responsibility of the client to communicate the termination to the direct employee.

✅ Step 4 – Add termination details

Select whether the termination is a voluntary resignation or involuntary.

Supporting documents can be added if needed.

If an involuntary termination is selected, a reason for the termination must be provided.

If the terminated employee is a manager with direct reports, a new manager for those reports must be selected.

✅ Step 5 – Finalize offboarding payments

Review the number of vacation days the employee is entitled to annually and enter the number of time-off days used up to the current date. Severance pay can be added as either a Cash Value or Time Value:

• Cash Value: Enter the desired amount for the severance payment, which is in addition to the mandatory statutory severance payment.
• Time Value: Add a time value severance measured in days, weeks, or months.

Note: If Deel Time Off is enabled, Time Off data will be synced automatically.
 

✅ Step 6 – Review and submit the termination request

Deel will review the request details and the desired contract end date.

The requested contract end date may be adjusted after an internal review of local labor laws.

Click Submit. 

Upon confirmation, a banner will appear on the employee's contract summary page.

Frequently Asked Questions 

[ACCORDION] How do I process severance for a terminated employee?

If a lump-sum severance is paid 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

[/ACCORDION]