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Final Paycheck Checklist: How to Close Employment Cleanly

Terminations and resignations are when payroll mistakes get expensive. A final-pay checklist protects both the employee and the business by creating a consistent closing process.


HR ANCHOR: A final paycheck checklist: last-day steps, documentation, and records that reduce confusion and disputes.

Before the final paycheck:

  • Confirm separation date and reason category (resignation, termination, layoff)

  • Collect return-of-property items and access shutdown plan

  • Prepare the final pay calculation: hours worked, overtime, outstanding reimbursements, earned PTO where applicable


On the final day:

  • Provide a written summary: dates, final pay components, and how questions are handled

  • Confirm time records are complete

  • Document return of property and final communications


After separation:

  • Store separation documentation in the personnel file

  • Update payroll system status and benefits administration

  • Conduct a short internal review: what could become a dispute?


Practical tip:Use a “Separation Packet” template so each exit is handled consistently.

Download the “Separation Packet + Final Pay Worksheet.”Disclaimer: Educational information only; final pay timing rules vary by jurisdiction.

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