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@lizzi You charge them back 100% ans take it out of remaining pay owed. Work with your HR vendor to make sure you're going by the book. If you really don't want to deal with that and are willing to accept the loss, remove them from your employment immediately.

@lizzi I own B2B outside sales business. I'd looked as this as theft and fire the employee. If I can't trust you, you're out of my building. This person's moral compass is flawed. When they go through trouble, it'll just be something else. Best of luck..