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My Employee Was Terminated Mid-Month — Am I Getting a Refund?

When an employee is terminated mid-month, the payroll subscription is reconciled (credit for unworked time), but non-payroll subscriptions (EOR, Health, Equipment) are paid in full for the month.

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Written by Steve Waters

When an employee is terminated mid-month, here's 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.

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