Payroll Processing for Deactivated Employees: Hourly and Salaried

This article explains how salary, benefits, and paid-time deductions (PTDs) are handled for deactivated employees in 7shifts Payroll, distinguishing between salaried and hourly staff.

Salaried Employees

When a salaried employee is deactivated:

• Removal from Draft Payrolls: They are automatically removed from any draft payrolls. This prevents automatic deductions for benefits or PTDs.
• Recommended Action: To process their final payment, we recommend running an off-cycle payroll.
  • In the off-cycle payroll, the employee’s hours will appear as an editable field.
  • With a Termination Date: If a termination date was set during deactivation, 7shifts Payroll will automatically calculate the amount owed based on that date. This value is editable.
  • Without a Termination Date: If no termination date was set, the system assumes the employee worked the full pay period. This amount is also editable to allow for adjustments.
• Learn More: Learn how to run an off-cycle payroll here.

Hourly Employees

When an hourly employee is deactivated:

• Inclusion in Draft Payrolls: Their recorded labor data (worked hours) remains and will be included in draft payrolls.
• Benefit and PTD Application: Benefits and PTDs will continue to be applied based on their earnings.
• Action: Process Payroll as Usual: The inactive hourly employee will be included automatically when you process payroll as usual.