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Read this when an employee is leaving, has left, or is moving to part-time or contractor status.

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Before you terminate

  1. Decide on final pay. Will their last wages go out on the next regular payday, or do they need an Off-cycle payroll? Some states require final pay within a set number of days of separation. Check your state’s rule or ask support.
  2. Approve any outstanding time off or timesheets so they’re in the final pay.
  3. Note any PTO payout your policy or state requires, and add it as an earning on the final run.

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Terminating in Bolto

Open the employee’s profile and select Terminate. Enter the termination date. This should be their last day of employment, not the day you’re processing it. There’s no option to schedule one for later, so process it on or after their last day. After termination:
  • The employee leaves active payroll groups and won’t appear in future drafts. If they’re in a draft that’s already open, you will need to either remove them or keep them in for final pay.
  • Their record, paystubs, and tax documents stay available to you and to them. They’ll get a W-2 for the year.
  • Benefits deductions stop with the final payroll. If benefits are integrated through one of Bolto’s official benefits integrations, we will notify carriers of coverage termination and in some cases, provide options for you to manage COBRA. If you are using benefits through a third party that is not an official Bolto integration, you will be responsible for notifying your benefits provider of the termination date so coverage ends.

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Severance

Pay severance as an off-cycle payroll with a Severance or Bonus earning, taxed as supplemental, usually with benefits and post-tax deductions turned off, or add a Severance line item to the employee’s final regular payroll run. See Off-cycle options.

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Proration

For a salaried employee leaving mid-period, Bolto prorates the final regular paycheck from the termination date. Check the final draft before submitting. If the proration looks wrong, edit the earning in the draft before approving.

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Moving someone to part-time, hourly, or contractor

  • Part-time or hourly: Don’t terminate. Update their pay and exemption status on their profile. If they become hourly, move them to a group that isn’t on Auto-Pay.
  • Employee to contractor: There’s no automatic conversion in this direction. Terminate the employee record, then Add them as a contractor with the same email. Make sure the role actually qualifies as contractor work first.

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Removing a departed employee from an open draft

If someone left before the payroll was drafted and shouldn’t be paid, open the draft and remove them. If Bolto won’t let you remove them because they’re still active, terminate them first and the draft will update.