8 Tips to Handling Layoffs… from a Financial Perspective

We are in uncharted territory in the world right now. As you navigate through the new opportunities you are faced with, you may have to make difficult choices. We can support you through this time, even during difficult choices. We have created a quick reference for 8 tips to handle layoffs from a financial perspective.

#1. Communication with Payroll Department:
Whether you outsource payroll or have an in-house payroll department, it is vital to communicate your plan with them.

#2. Document Everything:
Create documentation for the event and confer with your HR team prior to the event.

#3. Severance Pay:
Consider any severance pay that will be offered and ensure that it complies with appropriate regulations.

#4. Pay Out within 24 Hours:
You must cut checks or direct deposit within 24 hours of the layoff. This includes PTO accrued up until the employment has ended.

#5. Sick Leave:
Sick leave is not required to be paid out in some states. In Colorado, confirm specific requirements related to the Colorado HELP act.

#6. Company Property:
Make plans for return of company property if needed. Bonus points if you have documentation to make the return process easier.

#7. Benefits:
Provide any benefit information as necessary. This includes pension and COBRA.

#8. If Employee will be Rehired:
Make sure the employee knows to mark themselves as Job Attached when applying for unemployment.

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