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Terminating Employees who Participate in Benefits

Written by Jason Velez

Updated at August 16th, 2022

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When terminating an employee who participates in benefits, there are a few points to remember, especially when the customer uses iSolved COBRA Administration or carrier feeds:

When terminating an employee, the system is designed to update the Employee Benefits section for you when using the Termination Wizard. 

Simply navigate to the General screen and select “Terminate.” 

This brings up the form to add the termination reason, date, etc. More importantly, it shows all the benefits in which the employee currently participates.


If an employee has any pending benefits (those that are future dated), the customer can opt to delete the pending benefits. 

If they are using carrier feeds, however, they may want to add the benefit stop date rather than deleting the pending benefit. This way, the next file will be sent to the carrier with the stop date included. 

Since some benefits don’t end based on omission, it is recommended that you don’t delete the pending benefit for those who use carrier feeds.


You are also able to update the benefit stop date for current benefits, if needed. However, it is recommended that you use the actual last date they would be covered as an active employee, even if the customer is given a severance package. 

Doing this allows the proper timeframes for COBRA to be followed. The stop date is listed on the COBRA notice as the “Loss of Coverage” date. Then, once the employee has elected, the customer can easily apply the severance to the employee record in the COBRA portal.

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