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Client Terminations – Start Here!

Client Termination Checklist (last updated 3.30.2025) 

Sample Emails to Clients 

  • Click here for Sample Emails  to send to clients once they give notice of termination. 
  • You will need to clarify what federal and state filings and payments are due, how long Payroll Vault needs to make filings, and whether (and when) any accounts need to be closed.   
  • From this information you can calculate any final billing for future quarter filings, plus year end/W2/1099 filings. 

Determine Tax Impact 

When the client responds, determine quarterly filing and W2 impact: 

  If a client is closing the business OR is merging with another business, typically we need to complete the current year’s quarterly filings and W2’s.  

  • If a client is going to another regular payroll provider (PayCom, ADP, etc) the new payroll provider will typically handle the rest of the filings and W2’s for the current payroll year. Sometimes the client times their termination with the end of a quarter so there would be one more filing in isolved before they transition to a new provider. 
  • If a client is going to a different payroll provider, but it is a PEO, we file the remaining quarterlies and W2’s because the PEO functions like an acquisition to a new FEIN. 
  • If you are unsure, PLEASE contact the OPS team by submitting a ticket. 

 

For All Terminating Clients 

  1. Process the final Payroll 
  2. Remove all future payroll run schedules (active and inactive) - this will affect the Tax Forms/Filing and auto-populate the "Last of Quarter/Year" checkboxes when you run the Final Billing/Special Payroll. 
  3. Change the legal company status to “Term w/ Access”   
  4. Give client deadline for removing all historical reports and employee documents from isolved 
    1. Client moving to new provider:  Suggested: 30 days.  If they need more time, consider charging them for the access. 
    2. Business Closing or EIN changing:  Suggested: After tax deadline of following year. 
    3. After the deadline, change the legal company status from “Term w/ Access” to “Terminated”