Payperiod is 10/1-15. Employee is paid, however resigns on 15th, not entitled to pay for the 15th.?

Question

They are owed travel expenses. Can the net pay for the 15th be deducted from the expense check? How would you handle such a situation?

They resigned in the morning.

Answer 1

I would keep payroll and travel expenses separate. If you do what you suggest, you may still have to pay the medicare and social security tax that for the 15th. It would be better to write a new paycheck for 10/1-14 and have the employee return the original check for 10/1-15.

Answer 2

Pay them for the 15th. If the employee is salaried they get paid for the day of their resignation regardless of how long they worked.

You cannot deduct unearned wages from an expense check unless you want to give your payroll system fits.

Answer 3

Legally you owe him for the day he resigns as well if he's on a salary. If he's hourly, pay him for the time he was there. Frankly, it's probably a good idea just to pay him for the whole day of the 15th whether or not he was there, just to end on a good faith basis. If you don't, and he sues you, even if he's wrong it will end up costing you way more than the rest of the day's wages.

Answer 4

I'd pay them for the amount of time worked on the 15th. Figure out what their hourly wage would be (if it's an annual salary, divide by 52 then by 40). If they've been paid for the entire time, deduct that amount from anything they are owed.

Answer 5

Did they work the 15? then yes, entitled to payment.

I'm confused on the wording on travel expenses.

If employee is owed travel expenses, then salary + travel expenses = amount of check.

If employee owes company money for travel, then salary - travel expenses = amount of check.

I'm not sure how pre-tax/gross pay/net pay is figured into the last scenario. Check with an accountant (you should have one for the business anyway).

Answer 6

When did they resign? At the end, or the beginning of the day. If they worked the 15th, then they should be paid for it. That day might be the for the next pay period though.

Answer 7

Your situation and relative answer will depend on a number of factors. One being the area and legilsation applicable to that area in regards to employment standards in that area. Most places have Labour Relations Advisory Board or such that deals with these types of situations. Second was proper notice given given to the employer in resigning the position? Was it given in writing? Did you retain a proof of copy? Standards are in place that specify the amount of time needed to inform an employer of a termination of emploment by an employee, usually 1 weeks notice for 3 months- 1yr of employment, 2 weeks for 1- 3 years employment and so an according to local standards of the area you are employed in. If proper notice of termination is provided in writing, then the employer is not entitled to withhold payment of wages for that employee. If improper notice or notice that can not be verified in writing then the employer is entitled in most places to hold back payment of wages earned for a period of 2 weeks. If you feel you rights are being violated then contact your local Labour Standards Branch and fill a formal complaint against the employer. If judgment is made in your favor then the employer in violation can be sued in civil court for violateing your rights on top of the delinquent wage payment. Look to your local government to establish the guidelines applicable to your area of residence. Good Luck

Answer 8

I'd pay them the travel expenses and not worry about the one day's pay.