When an employee is terminated mid-month, unworked payroll time is credited back through the payroll reconciliation, but there is no pro-rata refund for the EOR plan, health insurance or equipment for that month. Here is what happens:
Subscriptions terminate at the end of the current month. No subscription billing in the next month.
Payroll subscription: the reconciliation process captures the difference between what was billed for the full month and what was actually paid for the days worked. Unworked time generates a credit on the relevant payroll lines.
Non-payroll subscriptions (EOR plan, health insurance, equipment): no pro-rata refund. These subscriptions are paid in full for the month the termination occurred.
This is by design. The payroll track is reconciled, so you only pay for actual work, but non-payroll subscriptions cover services committed for the full month and are not pro-rated.
Health insurance when an employee leaves
The employee's health insurance, and their dependents' cover, ends with their employment. See What Happens to Health Insurance When an Employee Leaves.
Who to contact
For questions about a final invoice, credit or refund, contact your Customer Success Manager.