How Terminated Employees are Billed

The standard HUB billing model is per employee per month (PEPM). The question we always receive is how terminated employees fit into this since many times, you still want to keep the term'd employee active in HUB to receive their W2 the next January.

With a per employee per month model, there's a gray area of whether or not the terminated employee is included in HUB's PEPM count.  Below are the guidelines on whether or not a terminated employee is included or not:

  • The terminated employee receives a delivery (pay stub, W2, etc...) in the given month: INCLUDED
  • The terminated employee does not receive a delivery in the given month: NOT INCLUDED

So let's put an example together to clearly display these rules:

  • An employee is terminated in April and receives their last pay stub in April: The employee is included in your April employee count
  • The terminated employee is still active in HUB from May til December but does not receive a delivery during this time: The employee is not included in your May - Dec employee count
  • The terminated employee receives their W2 in January: The employee is included in your January employee count
  • The terminated employee is still active in February but does not receive a delivery: The employee is not included in your February employee count
  • The terminated employee's HUB access is deactivated completely: The employee is not included again in HUB employee counts
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  • 30-Mar-2015
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