When an employee leaves your company, following a proper offboarding process ensures a smooth transition and helps you stay compliant with payroll and tax regulations. Use this checklist to make sure nothing is missed.
Run Payroll
We recommend running payroll 2–4 days before the employee’s last day to allow time for direct deposit to process.
Make sure you meet your state’s requirements for:
Final paycheck deadlines
Payout of unused PTO (if applicable)
If you're paying an employee outside of payroll (e.g., with a physical check), ensure the payment is recorded for tax purposes.
Tax Forms & Documents
Confirm that the departing employee has a way to access their paystubs and tax documents, such as:
W-2 forms
Final paystub records
👉 Employees can continue to access documents through their Gusto login after leaving the company.
Disconnect Accounts & Services
Before the employee’s last day, review and disconnect any company-owned accounts, such as:
Email accounts
Internal tools or software logins
Access to shared drives or communication platforms
Doing this before the employee departs ensures a secure and complete offboarding.
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