- 1). Record the effective date of the employee's termination. For example, if you told an employee to finish the current week but not to return to work the following week, her last working day of the current week is the effective date of her termination. When you dismiss an employee effective immediately, record that day's date.
- 2). Ask the terminated employee if she wants to pick up her final paycheck or have it mailed to her. No statute specifies this, but Arizona statute 23-353 does specify that you must mail the paycheck to an employee if she requests this delivery method.
- 3). Look at your company's pay schedule to determine when the next pay date occurs. If it is within the next three working days, you must issue the final paycheck on or before this pay date. If the pay date is further away than three days, you must issue the paycheck no later than the third working day after the effective date of the termination.
- 4). Add the monetary totals associated with any unused sick pay, vacation pay, severance pay, commissions and bonuses earned by the employee. Include these totals in the final paycheck or in a separate check issued on the same day. Arizona statutes label these funds as wages, and, as wages, they must be paid within the same time limits final wages are paid.
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