Terminating Employees in Self-Insurance Companies

If an employee leaves a self-insurance company while on temporary disability (IT or AT/EP), the employee is entitled to continue receiving the economic benefits for the temporary disability until the end of the sickness event. The self-insurance company must therefore continue managing the cost of the temporary disability.

For the payroll process to include terminated employees who were absent on the termination date, you must terminate the employee with an Action/Reason field value of Terminated with Pay (TWP action) or similar action with a payroll status value of Terminated With Pay on the employee's job data record. This sets the Payroll Status field value for the employee to Terminated With Pay and makes the employee eligible for payroll processing. You can determine which actions have this payroll status by viewing the Payroll Status field value for the action definition on the Action page of the Action Reason component.

When the employee's temporary illness ends, you must then update the employee's payroll status to Terminated by selecting the Terminated (TER action) in the Action/Reason field so that the payroll process no longer includes the employee.