This article explains how clients can process final pay for California-based hourly employees under a PEO contract using a paycard.
This process ensures compliance with California’s requirement for immediate wage payment upon termination.
In this Article
How to Process Final Pay via Paycard
When to use this process
Use this process only when both of the following conditions are true:
The PEO employee is California-based and on hourly payroll
The employee is being terminated and must be paid immediately via paycard as required by California labor law
Please do not use this process for exempt employees or workers outside of California.
How to Process Final Pay via Paycard
✅ Step 1 - Identify the terminated employee
Confirm that the terminated employee is eligible for this process.
Confirm the employee is California-based and hourly
Confirm the employee is under a PEO contract
Ensure the employee has been properly terminated in Deel using How To Begin The Termination Process And Offboard A PEO Employee
Please note that if the employee has not yet been terminated in Deel, complete the termination process in the platform before proceeding.
✅ Step 2 - Create an off-cycle payroll request
Navigate to the Off-Cycle Payroll section in Deel. Click Create New Request
Select the terminated employee and enter all required fields:
Hours worked
Expenses
Tips
Any other earnings
Click Submit
✅ Step 3 - Notify Deel Payroll of the termination
Immediately after submitting the off-cycle request, notify your Payroll Manager. You may notify them through:
Slack (if your organization uses Deel Slack)
Email
The Payroll Support in Deel
Include the following in your message:
Notification of California employee termination
Employee name
Confirmation that pay will be processed via paycard
✅ Step 4 - Review and approve off-cycle payroll
Please wait for Deel Payroll to process the request. Navigate to the Off-Cycle Payroll section and click on the pending approval.
Review the entered data for accuracy and click Approve.
Please note that the net pay amount will appear in the Miscellaneous column of employee deductions.
✅ Step 5 - Fund the approved off-cycle payroll
You can now initiate funding as per your standard off-cycle payroll funding process.
✅ Step 6 - Load paycard with net pay
Now, Log in to your Paycard System. If not already done, enroll the terminated employee.
Load the final net pay onto the employee’s paycard.
✅ Step 7 - Deliver the paycard to the employee
Hand the paycard directly to the employee.
If required, log confirmation of delivery in your internal compliance records.
Frequently Asked Questions
[ACCORDION] What if the employee is not California-based?
If the PEO employee is not California-based or is not an hourly employee then this process is not required. Follow your standard PEO termination and payroll procedures.
[ACCORDION]What if the paycard system is down?
Escalate to the Deel PEO Payroll team for alternative payment methods (e.g., check or ACH).