The termination date you enter determines when an employee's HRA eligibility ends and can affect reimbursements, reporting, and compliance.
Why is the termination date important?
The termination date determines:
When the employee's HRA eligibility ends.
Which reimbursement requests remain eligible.
How the employee appears on reports.
Compliance with your benefit plan.
Always enter the employee's actual eligibility end date according to your plan rules.
How should I choose the termination date?
When terminating an employee:
Determine the employee's final eligible date under your benefit plan.
Enter that date during the termination process.
Save your changes.
The system uses this date to determine ongoing eligibility.
Can an employee remain eligible after leaving employment?
Depending on your employer's plan design, an employee may remain eligible through a specified coverage period.
For example, if your plan allows benefits through the end of the month, enter the appropriate month-end termination date so eligibility ends correctly.
Follow your organization's benefit rules when selecting the termination date.
What happens if I enter the wrong date?
An incorrect termination date may affect:
Employee reimbursement eligibility
Reimbursement reports
Payroll reporting
Compliance records
If you discover an error, update the employee record as soon as possible.
When does this article not apply?
This article explains how termination dates affect eligibility.
It does not explain how to terminate or reactivate employees.
Key takeaway
Choose the termination date carefully because it determines when HRA eligibility ends and affects reimbursement and reporting.