SOP for Terminating Clients

Purpose:

The purpose of terminating company profiles within a platform is to ensure the platform maintains accurate, relevant, and trustworthy information for its users. By removing outdated, inactive, or non-compliant profiles, the system can uphold quality standards, improve user experiences, and mitigate risks, ultimately enhancing the platform's value and credibility.

Scope:

This SOP aims to guide users on how to effectively close out company profiles and terminate on all required platforms.

Prerequisites:

When terminating company profiles in a system, several prerequisites should be considered to ensure a smooth and compliant process. Some of these prerequisites may include:

Notification Requirement: This notification may include reasons for termination, steps to remedy the situation (if applicable), and timelines for action.

Review of Terms of Service: Before initiating any termination process, review the Client’s Customer Service Agreement (CSA) to ensure compliance with the established guidelines for terminating services.

Communication Plan: Develop a communication plan to inform management of the Client’s request to terminate services. This may involve updating terms of service, notifying affected parties, and addressing inquiries or concerns.

Documentation of Compliance: Maintain records documenting the compliance with prerequisites and the termination process itself. This documentation can serve as evidence of due diligence and help mitigate potential disputes or legal challenges.

Coordination with Support Teams: Coordinate with relevant support teams (e.g., customer service, treasury team, legal team) to address any inquiries or issues related to the termination of the company profile.

Post-Termination Measures: Implement post-termination measures, such as archiving data, updating internal records, and monitoring for any residual effects or unintended consequences of the termination.

Procedure:

Termination of Services Request:

A Client submitting a request to terminate services typically involves a formal communication from the Client to the service provider indicating their intention to end the existing agreement or contract. This request is usually initiated for various reasons, such as dissatisfaction with the service, changes in business needs, or financial considerations.

The Client's request to terminate services typically includes essential details such as:

Identification: The Client provides their name, contact information, and any relevant account or contract numbers to ensure proper identification and processing of the request.

Reason for Termination: The Client specifies the reason(s) for terminating the services. This could range from issues with service quality, changes in business priorities, or financial constraints.

Termination Date: The Client indicates the desired date for the termination to take effect. This may align with the end of a payroll cycle or another mutually agreed-upon timeframe.

Requirements: Any specific requirements or conditions associated with the termination, such as company reporting, are communicated by the Client.

Expectations: The Client may outline their expectations regarding the termination process, such as confirmation of receipt of the request, cancellation of automatic payments, or the issuance of a final invoice.

Actions:

• • • In the Client’s company folder, create a sub-folder labelled “Termination of Services”
    • Save of copy of the Client’s request to terminate services

 

Review of Terms of Service:

Review the Client’s Customer Service Agreement (CSA) to determine the notice requirements for terminating services. Based on the Client’s formal request and intended termination date, establish whether sufficient notice has been provided by the Client, or if an early termination fee if required.

Actions:

• • • Prepare a summary of conditions applicable to the Client based on the termination clause in the Customer Service Agreement

Notify Management:

Submitting a request to management involves formally communicating a Client’s request to terminate services. Typically, the request would identify the Client’s concerns, termination date, and CSA notice requirements. Management can review the Client’s request and determine if there is a means to re-establish a working relationship.

Actions:

• • • Submit a request to management outlining the following information:
      • Client name and contact information of the individual who submit the request
      • Intended termination date
      • Client’s concerns or reason for termination
      • Termination requirements per the CSA and whether a termination fee is applicable
      • Ticket ID or link to the Client’s formal request to terminate services

 

Response and Feedback:

Management provides a response to the request approving or requesting additional information. In some cases, management may reach out to the Client directly with suggestions for improving services or addressing concerns raised.

If management advises to proceed with actioning the Client’s request, or the Client continues to proceed with the termination after management has contacted them, the termination process can be initiated.

Actions:

• • • Respond to the Client’s termination request using the appropriate email template
      • Client Termination of Services - Change in Service Provider
      • Client Termination of Services - Closing Canadian Operations
    • Modify the contents of the template to represent the details specific to the Client, such as dates, termination notice, final payroll date, etc.
    • Save a copy of the Client’s response/report requests in the Client’s “Termination of Services” folder

 

Confirmation of Exit Package:

The Client is responsible for advising what type of reporting they require to ensure a smooth transition between service providers or closing down business operations. The termination of services template outlines the proposed reporting elements; however, Clients may request additional reporting based on their needs.

Actions:

• • • Determine employee/employer reporting requirements based on the Client’s response to the Termination of Services email template
    • Establish whether the reports requests fall within the exit package (outlined in the email template) or if there are additional ad hoc reports being requested
      • This step will help determine costs for final billings
    • Save a copy of the Client’s response/report requests in the Client’s “Termination of Services” folder
    • Create a task within the CRM to prepare the ROEs once the final payroll has been processed
    • Create a task within the CRM to prepare the reports once the final payroll has been processed
    • Create a task within the CRM to prepare the final invoice once the final payroll has been processed

 

Final Payroll Processing:

The final payroll date will be confirmed in the Client’s request to terminate services.

If the Client is changing payroll providers, the payroll will typically be processed based on normal practice. If the Client is closing down business operations, the final payroll will typically include additional payments such as payout of vacation pay, pay in lieu, bonus, or any additional compensation the employee may be entitled to.

Actions:

• • • The Client will submit the payroll file for processing as per usual
    • Prepare vacation payout calculations, if applicable
    • Assist the Client in additional payment calculations, such as pay in lieu, if applicable
    • Remove the Client from the remainder of the Employer Service Annual Calendar

 

Employment Records Preparation:

Once the final payroll has been completed, the records of employment (ROE) need to be filed for all active employees. This is a key requirement regardless of the Client is changing payroll providers or ceasing operations. The purpose of the ROE is to record the historical insurable hours and earnings for each employee and report with Service Canada. The ROEs are a billable service as outlined in the Termination of Services email sent to the Client. It is important to receive confirmation from the Client that PSII is responsible for issuing the ROEs on the Client’s behalf given there are associated costs.

Actions:

• • • Terminate the active employees and prepare the ROE files
    • Upload the ROE files to ROE Web to file with Service Canada
    • Download a bulk copy of the ROEs in PDF format from ROE Web and save in the Client’s “Termination of Services” folder
    • Upload the bulk copy to the Client portal (EPP)
    • Mark the ROE task as completed within the CRM

 

Reports Preparation:

Once the final payroll has been completed, the requested reports can be generated within the system.

If the Client has requested the Exit Package, this includes the following reports:

• Employee information report
• Year-to-date payroll totals report
• Vacation/PTO liability reports
• Deduction/Benefit listing
• Company registration and rates report

Actions:

• • • Prepare the reports and save in the Client’s “Termination of Services” folder
    • Upload the reports to the Client portal (EPP)
    • Mark the reports task as completed within the CRM

 

Taxation Accounts and Remittances:

The Client will typically have funds on account for remittances relating to previously processed payroll depending on the remitting requirements of the tax accounts.

If the Client is changing payroll providers, any remittances on account with PSII will be paid over to the tax authorities per the prescribed due dates.

If the Client is ceasing operations, they will need to advise whether they have opted to keep their tax accounts open or if they have chosen to close the accounts. If the Client has chosen to keep the tax accounts open, any remittances on account with PSII will be paid over to the tax authorities per the prescribed due dates. The Client will also be responsible for maintaining the tax accounts after the termination of services. If the Client has chosen to close their tax accounts, any remittances on account with PSII will be paid over to the tax authorities within 30 days of ceasing operations. There is a cost associated with PSII closing the Client’s tax accounts as outlined in the Termination of Services email sent to the Client. It is important to receive confirmation from the Client that PSII is responsible for closing the tax accounts on the Client’s behalf given there are associated costs.

Actions:

• • • If the Client is changing payroll providers
      • Any remittances on account with PSII will be paid over to the tax authorities per the prescribed due dates.
    • If the Client is ceasing operations but keeping their tax accounts open
      • Any remittances on account with PSII will be paid over to the tax authorities per the prescribed due dates.
    • If the Client is ceasing operations and closing their tax accounts
      • Any remittances on account with PSII will be paid over to the tax authorities within 30 days of ceasing operations
      • Submit tax account closure requests (online or mailed forms) for all tax accounts on file for the Client

 

Annual Return Preparation:

The Client’s tax accounts require annual returns for each tax year.

If the Client is changing service providers, the annual returns for the entire tax year will become the responsibility of your new payroll provider.

If the Client is ceasing operations, the annual returns should be filed within 30 days of ceasing operations if the accounts are being closed, or by the prescribed deadlines for each tax account if your accounts remain open. If the accounts are being closed, the Client will need to advise if they are contracting PSII to file the annual returns on their behalf. There is a cost associated with filing the annual returns for each tax account as outlined in the Termination of Services email sent to the Client. It is important to receive confirmation from the Client that PSII is responsible for filing the annual return on the Client’s behalf given there are associated costs.

Actions:

• • • If the Client is changing payroll providers, there is no further action required by PSII
    • If the Client is ceasing operations but keeping their tax accounts open
      • The annual returns are due to be filed by the prescribed due dates for each tax account

• • • If the Client has chosen for PSII to file the returns, create a task within the CRM to file the annual returns by the due dates
      • Create the “Year End” folder for the tax year
      • Prepare and file the annual returns
      • Upload copies of the annual returns to the Client portal (EPP)
      • Upload copies of employee tax slips to the Employee Self Serve (ESS) portal
      • Mark the annual returns task as completed within the CRM
    • If the Client is ceasing operations and closing their tax accounts
      • The annual returns are due to be filed within 30 days for each tax account

• • • If the Client has chosen for PSII to file the returns, create a task within the CRM to file the annual returns by the 30^th day
      
      • Create the “Year End” folder for the tax year
      • Prepare and file the annual returns
      • Upload copies of the annual returns to the Client portal (EPP)
      • Upload copies of employee tax slips to the Employee Self Serve (ESS) portal
      • Mark the annual returns task as completed within the CRM

 

Final Invoicing:

The final invoice details can be established once the Client has responded to the Termination of Services email. This communication will serve as confirmation of all actions and services required by PSII. Once the final payroll has been processed, the invoice can be created and issued to the Client for payment.

Actions:

• • • Review client communications to determine all billable items
    • Prepare an adjustment invoice reflecting all billables
    • Save a copy of the invoice in the Client’s “Termination of Services” folder
    • Upload a copy to the Client portal (EPP)
    • Notify the client of the final invoice and arrange payment
    • Submit a funding request ticket to the Treasury Team to ensure payment is received
    • Mark the final invoice task as completed in the CRM

 

Notify Treasury:

The Treasury team requires notification of when a Client terminates services. The Treasury team is responsible for reconciling the statement of account and remittance liabilities. This ensures that all payments have been received by the Client and all remittances have been paid by PSII. The Client’s account cannot be closed out until there are no balances remaining.

Actions:

• • • Submit a ticket to Treasury outlining the termination of services details using the appropriate email template
      • Internal Treasury Ticket - Client Termination of Services
    • Modify the contents of the template to represent the details specific to the Client, such as Client name, termination date, final payroll, final invoice number, Client owner etc.
    • Treasury team
      • Reconcile statement of account
      • Reconcile remittance statement
      • Arrange funding of outstanding balances, or issue credits, with the Client

 

Portal Access:

Both Clients and its employees have access to separate portals where they can access their information and documentation. Clients have access to the Client portal (EPP), and employees have access to the Employee Self Serve portal (ESS).

Client Portal (EPP) Access:

• • Admin users will maintain access for three months time from the date of termination
  • PSII encourages Clients to download all reports for their records, if not done so already

Employee Self Serve (ESS) Portal Access:

• • Employees will maintain access to the ESS portal as long as the email address in our system remains active
    • Employees require access to their email on file to be able to complete the verification process for logging into the portal
  • PSII encourages employees to download all their documentation for their records, if not done so already

Actions:

• • • Create a task within the CRM to disable all users registered to the Client’s profile 3 months from the date of termination
    • Update the email address on file for any employees who require an email change (e.g. change from work email to personal email)
      • The Client is responsible for providing personal emails for employees as outlined in the Termination of Services email sent to the Client
    • Mark the disabled portal access task as completed within the CRM once completed

 

Company Maintenance:

When a Client terminates their services, we need to ensure the company information on all platforms are updated. This information can include company labels in the CRM, inactive status in the payroll system, etc. The purpose for maintaining the company information is to ensure it is clear to all users whether a company is an active or inactive client of PSII’s.

Actions:

• • • Platform: CRM
      • Update the label of the company name to include “[Inactive]” preceding the company name
    • Platform: Payroll System

• • • • Assign all active Payrolls status to inactive

• • • • Assign the Company status to inactive

• • • Client folder
      • Re-locate the Client’s folder on the F drive to the “INACTIVE CLIENTS” folder

Conclusion:

A Client submitting a request to terminate services initiates a formal process that requires clear communication, attention to detail, and adherence to any contractual obligations or terms of service. By following and understanding this SOP, the termination of Clients can be conducted in a compliant, transparent, and efficient manner, minimizing risks, and ensuring a positive outcome for all parties involved.