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How HR Software Can Help Ease Employee Separation


When an employee leaves your company, no matter the reason, it can create a significant amount of work for your HR team. From retaining the appropriate records to responding to requests for information in connection with unemployment insurance claims, it's critical that HR has easy access to employment and separation data. HR software may be able to ease the burden of employee separation, such as responding quickly to respond to data requests, all while helping your team manage and track each step of the process. Here's a closer look at how HR software can help you manage this common yet critical component of a human capital management (HCM) strategy.

Documentation Related to the Separation

Having access to accurate records is critical to the employee separation process. If an employee quits, ensure that your HR software maintains a copy of their written resignation and archives the original in your files. If an employee has been fired for cause, it's important to retain communications, documentation, and disciplinary information. Relevant forms and documents can be tracked using HR software including exit interview documentation and termination checklists. The system can be set up to allow for relevant notes to be added to documents.   

Meeting Termination Requirements

When an employee is terminated, there are a number of steps companies may need to take. HR software can assist your team throughout the process and make it easier to comply with requirements, from health care continuation coverage to final pay . Here are some common tasks that may be accomplished more efficiently through HR software:

  • Managing final pay,
  • Reimbursing final approved expenses
  • Terminating purchase cards, network access, and voicemail accounts
  • Addressing stocks and other company-related compensation
  • Managing termination paperwork such as 401k rollover forms, non-disclosures, and COBRA paperwork

Meeting COBRA Obligations

The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives qualified employees and their dependents who lose health care coverage due to a qualifying event the option to temporarily continue coverage at their own expense. When an employee leaves experiences a qualifying event, employers need to prepare a COBRA notice and oversee the administration related to COBRA election and payment. There are specific deadlines involved and penalties if those deadlines are missed. HR software helps keep you organized and retains the necessary records should you ever need to present them to state or federal authorities.

Unemployment Insurance Claims

Another area where retaining information is critical is when dealing with state unemployment insurance (SUI) claims. In some cases, such as a layoff, a SUI claim is warranted. Your company may need to respond to requests with basic information such as dates of employment and wage data. In other cases, a former employee may file an unfounded claim and you may want to appeal. HR software can help ensure you have access to the data necessary to manage an appeal, from disciplinary records to other termination details.

These are just a few examples of how the right HR software may make it easier to manage employee separations. To find the best software for your company's needs, start by evaluating your HR priorities today.


This website contains articles posted for informational and educational value. Paychex is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, Paychex. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant.
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