A furlough is a temporary, unpaid break from work. You use a furlough when business slows down or during an off-season — and you plan to bring the employee back later. This is different from an employee taking time off for personal or medical reasons.
In Gusto, we handle furloughs and leaves of absence the same way. To furlough an employee, skip them on payroll until they return to work. Do not dismiss them.
Important: Skipping an employee on payroll does not remove the per-employee charge on your invoice.
A furlough does not end an employee's benefits. Each carrier has different rules about how long an employee can keep their health benefits while not actively working. Contact your carrier to stay compliant.
While an employee is on furlough or leave, you need to pay their full health insurance premium to the carrier — including the employee's share.
When the employee returns and gets paid through payroll, we will apply catch-up deductions to cover any missed benefits contributions.
If an employee is not coming back, you can dismiss them in Gusto.