How do I offboard a PEO employee?

This article explains how to offboard an employee through Remote's PEO product. The offboarding process is completed directly within the Remote platform and follows a step-by-step flow to collect termination details, finalize pay, and notify the employee.

This guide is for employers (Company Owners and Admins) managing PEO employees in Remote.

Before you begin, agree on the termination terms with the employee outside of the Remote platform. Once you submit the offboarding request, Remote reviews the details and may reach out for additional information. Here is an overview of the process:

1. You agree on termination with the employee (outside the platform).
2. You submit the offboarding request in Remote.
3. Remote reviews and may request additional details.
4. You provide final payment details and upload any relevant documentation.
5. Remote confirms the final pay details and processes the payment.
6. The termination is completed, and the employee receives a notification.

Note: You cannot submit a retroactive termination (a last day of employment that has already passed). The platform will block the submission.

Follow these steps to submit an offboarding request.

1. Initiate offboarding

Go to Team management, select Team, then click Overview. Find and select the employee from the list. On their profile page, click the Manage profile dropdown and select Offboard employee.

2. Enter offboarding details

A guided form collects the key details about the termination. Provide the following information:

• Offboarding type: Select whether this is a resignation, termination, or mutual agreement. If you select resignation or termination, you will be asked to provide an additional reason for the offboarding.
• Last working day: The employee's final day of active work.
• Last day of employment: The official termination date.
• Is offboarding confidential? If you mark the offboarding as confidential, the employee will not be notified until the termination date.

Note: If the last day of employment is less than two business days away, you will see a warning that benefits changes may not process on time. Remote will reach out to coordinate. If the termination date is more than two business days in the future, payroll will be processed as usual in the next cycle.

3. Provide additional information

Complete the notice period details:

• Whether the employee worked the notice period
• Whether Payment in Lieu of Notice (PILON) was provided

4. Enter final payment details

Provide payroll-related details required to process the final payment:

• PTO summary: Upload a PTO file with the employee's paid time off balances. PTO is not auto-calculated in this flow.
• Severance amount (optional): Enter a flat dollar value if severance applies.
• Document upload: Attach any supporting documents, such as a termination letter or signed agreements.

5. Review and submit

A read-only summary screen displays all the details you entered. Review everything carefully.

Before submitting, check the attestation checkbox to confirm:

"I confirm that the information above is accurate, and I understand that Remote PEO does not provide legal advice."

Once confirmed, click Submit to create the offboarding request.

After submission, a confirmation screen shows:

• The final pay timeline
• A benefits coverage note: benefits coverage remains active until the end of the employee's terminating month
• A confirmation that you will receive an email shortly

Final pay timelines depend on the state where the employee is based.

• Same-day pay states: Some US states require final payment on the same day or within a short window of the termination. If the employee is in one of these states and the termination date is less than two business days away, Remote's Payroll Ops team will reach out to coordinate immediate payment.
• Standard states: If the state does not require expedited final pay, the payment will be processed in the next regular payroll cycle.

The following states have same-day or expedited pay requirements (within seven days or fewer): Alaska, Arizona, Arkansas, California, Colorado, Connecticut, District of Columbia, Hawaii, Illinois, Massachusetts, Minnesota, Missouri, Montana, Nevada, New Hampshire, Oregon, South Carolina, Texas, Utah, and Vermont.

On the last day of employment, the employee receives an email confirming that the PEO co-employment relationship is terminated. The email includes relevant information about benefits and next steps.

After termination, the employee retains access to the Remote portal to view payslips.

If the offboarding was marked as confidential, the employee does not receive any notification before the termination date.

Employers cannot edit or cancel an offboarding request directly in the platform. If you need to make changes after submission, contact Remote support for assistance.