How to Pay Out Remaining PTO for a Terminated Employee in 7shifts Payroll

This article outlines the process for paying out remaining Paid Time Off (PTO) to a terminated or deactivated employee using 7shifts Payroll.

Issue

You need to pay out the remaining PTO balance for an employee who has been terminated or deactivated. Since they are no longer actively working, their PTO payout must be handled separately from regular payroll processing.

Solution

Use an Off-Cycle Payroll to process the PTO payout. This ensures the payout is handled correctly without impacting your regular payroll cycles. Follow these steps:

1. Record the Remaining PTO
   • Reactivate the terminated employee in 7shifts. 
   • Add a paid time off request for the employee, reflecting their remaining PTO hours.
   • Be sure that the time off dates fall within the pay period you will process for the payout.
   • Learn how to submit time off on behalf of employees here.
   • Once PTO has been added to the employee, they can be deactivated again. 
2. Run an Off-Cycle Payroll
   • Create an off-cycle payroll (Auto-Sync Hours) that includes the terminated employee. This will allow you to pay out the PTO separately from the regular payroll run.
   • Learn how to run an off-cycle payroll here.