Employee status: Understand offboarding and leave

When an employee quits or is terminated, or when they go on short- or long-term leave, you’ll need to indicate that in Wave. Doing so keeps your business compliant, and ensures you’re only being charged to run payroll for employees who are currently working.

As an employer, you are legally obligated to keep accurate employee records; this includes updating employee statuses if they leave your employment permanently, or for a short time. You can update employee status under Payroll > Employees. Click the pencil icon next to the employee you wish to update, and then select Employment Status.

Select Leave, or Offboarding. You'll be asked to indicate:

  1. The reason for the leave or offboarding
  2. The employee's last date of work
  3. The date the employee gave notice, if any

The chart below lists some common scenarios and how to handle them in Wave.

What's Happening Mark Employee As What To Do In Wave
Employee is currently working/scheduled to work Leave employee as active If employee is hourly, make sure to continue to fill in their timesheet
Employee was terminated Terminated - Dismissed Offboard employee; select reason from the dropdown menu
Employee resigned Terminated - Resigned Offboard employee; select reason from the dropdown menu
Employee is on maternity leave (unpaid) On leave Place employee on leave. You'll select the reason when Wave issues the ROE
Employee is taking personal emergency leave (unpaid) On leave Place employee on leave. You'll select the reason when Wave issues the ROE
Employee is taking critical illness leave (unpaid) On leave Place employee on leave. You'll select the reason when Wave issues the ROE
Employee is not being paid (seasonal work, etc.) On leave Place employee on leave. You'll select the reason when Wave issues the ROE
What's Happening Mark Employee As What To Do In Wave
Employee is currently working/scheduled to work Leave employee as active If employee is hourly, make sure to continue to fill in their timesheet
Employee was terminated Terminated - Dismissed Offboard employee; select reason from the dropdown menu
Employee resigned Terminated - Resigned Offboard employee; select reason from the dropdown menu
Employee is take unpaid leave (any kind) On leave Offboard employee; select reason from the dropdown menu
Employee is not being paid (seasonal, furloughed, etc.) On leave Offboard employee; select reason from the dropdown menu

An employee is considered “active” if they are currently working or scheduled to work. If this isn’t the case, make sure you update their status to remain compliant.

Maintaining up-to-date active employees in Wave helps you keep accurate employee records, which in turn keeps your business compliant. It also ensures you’re paying the correct amount for Payroll each month!

Was this article helpful?
3 out of 3 found this helpful