Question about terminated employees

Michelle,
I have an employee that is supposed to terminate 1/4/02. I just received a call from Hector and he was telling me that we need to terminate all these employees effective today so we don't have to pay benefits for the month of January for these employees. I was not at that meeting last week and this was the first I have heard of this. I assume unless there is a business reason to keep someone around they will be terminated effective 12/31. This would have been easier to manage last week, but now since I have to call the employee and supervisor today and let them know that today will be this individuals last day. Please advise.
Mandy