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Termination Checklist
Termination Checklist
Please select the action items required for a termination of employment in your organization to create a customized checklist.
Payments and Other Payroll-related Actions
Check All| Item | Action to be taken | Select |
| Final pay period | Avoid overpayments of salary and ensure correct insurable hours and dollars | |
| Vacation pay | Unused vacation balance of ______ days paid out: $_________ | |
| Vacation accrual paid out: $_________ | ||
| Overtime/banked hours | Unpaid overtime paid out: $_________ | |
| Banked sick days | Refer to company policy | |
| Commissions | Refer to company policy | |
| Advances/draws | Refer to company policy | |
| Call-in Pay | Ensure day of termination is not included as part of payment in lieu of notice | |
| Legislated payment in lieu of notice (if insufficient working notice provided) | Calculate and determine if vacation must accrue and if pensions/benefits must be maintained | |
| Ensure CPP, EI, QPIP, and income taxes are calculated (no QPP) | ||
| Severance Pay/ Retiring Allowance | Calculate, determine eligible and non-eligible portions | |
| Calculated income tax using lump-sum rates | ||
| Salary Continuance | Calculate and determine if vacation must accrue and ensure pensions/benefits are maintained | |
| Calculate C/QPP, EI, QPIP and income taxes | ||
| RRSP/RPP Transfers | Ask if employee would like to transfer any portion of final payment to an RRSP, RPP or DPSP (see CPA’s sample Retiring Allowance Transfer Form) | |
| Legal orders to pay/garnishments | Advise courts if employee had any Requirements to Pay, Family Maintenance or other garnishments. | |
| Verify order for requirements upon termination | ||
| Expense | Advise employee of options | |
| Written permission to deduct any advances from last pay | ||
| Record of Employment | Prepare accurately and within legislated time frame | |
| Other |
Benefits
Check All| Item | Action to be taken | Select |
| Benefits | Reconcile taxable benefits and process any necessary adjustments on final pay | |
| Reconcile employee-paid benefits deductions and process any adjustments on final pay | ||
| Cancel or continue until___/___/___(Date) as per termination letter (Under the Ontario Employment Standards Act, employees must retain all benefits until the end of the legislated notice period.) | ||
| Advise of possible transitional benefits offered by insurance provider | ||
| Life Insurance | Advise employee of conversion option and deadline | |
| Pension Plan/Group RRSP | Notify pension department/administrator | |
| Provincial medical forms (BC) | Group consideration | |
| Profit Sharing/Bonus | Calculate percentage owing per terms of plan | |
| Shares | Refer to company policy | |
| Stock options | Refer to company policy | |
| Car allowance | Cease/pro-rate | |
| Company gas card | Returned to ___________________(Name) on ___/___/___(Date) | |
| Reconcile for possible taxable benefits | ||
| Employer-owned/leased vehicle | Obtain logbook and calculate automobile taxable benefit from personal kilometres reported | |
| Use Fair Market Value to determine potential taxable benefit if sold to employee | ||
| Service Award | Employee still eligible | |
| If employee no longer eligible, cancel order | ||
| Company loan | Repaid to ___________________(Name) on ___/___/___(Date) | |
| Outstanding balance/interest processed as taxable benefit | ||
| Tuition/ training reimbursements | Verify with company policy/employee contract for repayments upon termination | |
| Sign-on bonus | Verify with company policy/employee contract for repayments upon termination | |
| Other |
Company Assets
Check All| Item | Action to be taken | Select |
| Company credit card(s) | Returned to ___________________(Name) on ___/___/___(Date) | |
| Reconcile for possible taxable benefit | ||
| Employee discount card | Returned to ___________________(Name) on ___/___/___(Date) | |
| I.D. card | Returned to ___________________(Name) on ___/___/___(Date) | |
| Keys | Returned to ___________________(Name) on ___/___/___(Date) | |
| Manuals, books or other company documents | Returned to ___________________(Name) on ___/___/___(Date) | |
| Computer access codes | Remove access | |
| Computers, tools or other equipment | Returned to ___________________ (Name) on ___/___/___(Date) | |
| Sold to employee for Fair Market Value (FMV) | ||
| Not returned, or given/sold to employee below FMV and processed as taxable benefit | ||
| Cell phones, PDAs | Returned to ___________________(Name) on ___/___/___(Date) | |
| Sold to employee for Fair Market Value (FMV) | ||
| Not returned, or given/sold to employee below FMV and processed as a taxable benefit | ||
| Employee permitted to retain number/service at own cost | ||
| Deactivate number/service if employee not permitted to retain | ||
| Long distance telephone card | Returned to ___________________ (Name) on ___/___/___ (Date) | |
| Reconcile for possible taxable benefit | ||
| Other |
Communications
Check All| Item | Action to be taken | Select |
| Notify staff and management | Internal notification of termination (timing and method often a sensitive matter) | |
| Union | Notify union of termination | |
| Association/Board/ Membership | Notify/cancel membership (if applicable) | |
| Charitable donations | Inform employee of options | |
| Notify charitable organization | ||
| Finance | Provide details of any outstanding lump-sum payments, such as severance | |
| IT department | Notify to remove access to company database | |
| Internal staff directories | Remove employee’s name | |
| Mailing lists | Remove employee’s name from list and/or database | |
| Voice mail | Revert to default log-on and generic outgoing messages or deactivate | |
| Current address for year-end information (T4, RL-1, etc.) | Advise employee to provide any changes of address by phone/e-mail | |
| Other |
| Employee name: ________________________ | Employee number # _____________________ |
| Department: ___________________________ | Manager: ______________________________ |
| Date hired: ____/____/____(Date) | Effective date of termination:____/____/____(Date) |
| Yes | No | |
| Termination letter/release is returned and signed? | ||
| Eligible to rehire? | ||
| Have legislated standards been met regarding working notice or payment in lieu? | ||
| Have human rights/common law entitlements been considered? (When in doubt, seek legal counsel.) |
Payments and Other Payroll-related Actions
| Item | Action to be taken | Done |
| Final pay period | Avoid overpayments of salary and ensure correct insurable hours and dollars | |
| Vacation pay | Unused vacation balance of ______ days paid out: $_________ | |
| Vacation accrual paid out: $_________ | ||
| Overtime/banked hours | Unpaid overtime paid out: $_________ | |
| Banked sick days | Refer to company policy | |
| Commissions | Refer to company policy | |
| Advances/draws | Refer to company policy | |
| Call-in Pay | Ensure day of termination is not included as part of payment in lieu of notice | |
| Legislated payment in lieu of notice (if insufficient working notice provided) | Calculate and determine if vacation must accrue and if pensions/benefits must be maintained | |
| Ensure CPP, EI, QPIP, and income taxes are calculated (no QPP) | ||
| Severance Pay/ Retiring Allowance | Calculate, determine eligible and non-eligible portions | |
| Calculated income tax using lump-sum rates | ||
| Salary Continuance | Calculate and determine if vacation must accrue and ensure pensions/benefits are maintained | |
| Calculate C/QPP, EI, QPIP and income taxes | ||
| RRSP/RPP Transfers | Ask if employee would like to transfer any portion of final payment to an RRSP, RPP or DPSP (see CPA’s sample Retiring Allowance Transfer Form) | |
| Legal orders to pay/garnishments | Advise courts if employee had any Requirements to Pay, Family Maintenance or other garnishments. | |
| Verify order for requirements upon termination | ||
| Expense | Advise employee of options | |
| Written permission to deduct any advances from last pay | ||
| Record of Employment | Prepare accurately and within legislated time frame | |
| Other |
Benefits
| Item | Action to be taken | Done |
| Benefits | Reconcile taxable benefits and process any necessary adjustments on final pay | |
| Reconcile employee-paid benefits deductions and process any adjustments on final pay | ||
| Cancel or continue until___/___/___(Date) as per termination letter (Under the Ontario Employment Standards Act, employees must retain all benefits until the end of the legislated notice period.) | ||
| Advise of possible transitional benefits offered by insurance provider | ||
| Life Insurance | Advise employee of conversion option and deadline | |
| Pension Plan/Group RRSP | Notify pension department/administrator | |
| Provincial medical forms (BC) | Group consideration | |
| Profit Sharing/Bonus | Calculate percentage owing per terms of plan | |
| Shares | Refer to company policy | |
| Stock options | Refer to company policy | |
| Car allowance | Cease/pro-rate | |
| Company gas card | Returned to ___________________(Name) on ___/___/___(Date) | |
| Reconcile for possible taxable benefits | ||
| Employer-owned/leased vehicle | Obtain logbook and calculate automobile taxable benefit from personal kilometres reported | |
| Use Fair Market Value to determine potential taxable benefit if sold to employee | ||
| Service Award | Employee still eligible | |
| If employee no longer eligible, cancel order | ||
| Company loan | Repaid to ___________________(Name) on ___/___/___(Date) | |
| Outstanding balance/interest processed as taxable benefit | ||
| Tuition/ training reimbursements | Verify with company policy/employee contract for repayments upon termination | |
| Sign-on bonus | Verify with company policy/employee contract for repayments upon termination | |
| Other |
Company Assets
| Item | Action to be taken | Done |
| Company credit card(s) | Returned to ___________________(Name) on ___/___/___(Date) | |
| Reconcile for possible taxable benefit | ||
| Employee discount card | Returned to ___________________(Name) on ___/___/___(Date) | |
| I.D. card | Returned to ___________________(Name) on ___/___/___(Date) | |
| Keys | Returned to ___________________(Name) on ___/___/___(Date) | |
| Manuals, books or other company documents | Returned to ___________________(Name) on ___/___/___(Date) | |
| Computer access codes | Remove access | |
| Computers, tools or other equipment | Returned to ___________________ (Name) on ___/___/___(Date) | |
| Sold to employee for Fair Market Value (FMV) | ||
| Not returned, or given/sold to employee below FMV and processed as taxable benefit | ||
| Cell phones, PDAs | Returned to ___________________(Name) on ___/___/___(Date) | |
| Sold to employee for Fair Market Value (FMV) | ||
| Not returned, or given/sold to employee below FMV and processed as a taxable benefit | ||
| Employee permitted to retain number/service at own cost | ||
| Deactivate number/service if employee not permitted to retain | ||
| Long distance telephone card | Returned to ___________________ (Name) on ___/___/___ (Date) | |
| Reconcile for possible taxable benefit | ||
| Other |
Communications
| Item | Action to be taken | Done |
| Notify staff and management | Internal notification of termination (timing and method often a sensitive matter) | |
| Union | Notify union of termination | |
| Association/Board/ Membership | Notify/cancel membership (if applicable) | |
| Charitable donations | Inform employee of options | |
| Notify charitable organization | ||
| Finance | Provide details of any outstanding lump-sum payments, such as severance | |
| IT department | Notify to remove access to company database | |
| Internal staff directories | Remove employee’s name | |
| Mailing lists | Remove employee’s name from list and/or database | |
| Voice mail | Revert to default log-on and generic outgoing messages or deactivate | |
| Current address for year-end information (T4, RL-1, etc.) | Advise employee to provide any changes of address by phone/e-mail | |
| Other |