Introduction new global setting that will allow users to terminate employees beyond the current pay run’s end date. This functionality is turned on by Fourth (please liaise with your Fourth contact to arrange this).
Release Date: 31st January 2019.
Reason for the Change
Currently when the final holiday pay is set to pay automatically, the system limits termination dates to within the current payroll period. This prevents users from terminating employees with a termination date beyond the end date of the current pay period upon receiving an employee’s notice.
This is frustrating for users and gives a risk of forgetting to terminate an employee, which can result in overpayments.
All Workforce Management customers.
A new Global Setting will be created in Payroll > Administration > Global Settings > Holiday Pay Auto Pay Holiday for Final Payroll. This functionality is turned on by Fourth (please liaise with your Fourth contact to arrange this).
The Setting is called Allow termination dates beyond the current payroll end date?.
Fig.1 - The new Allow termination dates beyond the current payroll end date? setting
The setting is un-ticked by default, meaning that the system will continue to function as normal.
When the setting is ticked, users will be able to enter a termination date beyond the current pay run date. The final holiday pay will then be calculated correctly for the terminated employee during their final payroll preview process.
Any terminations made in the current or previous pay run will receive the existing holiday pay calculation message.
Under HR > Employee > Employee List > Administration > Termination Reasons, the termination message will change and it will be:
The finally holiday pay will be calculated during the final pay run”.
Fig.2 - New termination message
Please Note: There will be no pop-up showing the final holiday pay as it will be only calculated when the employee is in their final pay run.
Reporting on employees and their termination details is already available within the Customised Report Functionality in the HR Module.
Reporting to HMRC
Currently, HMRC will return any Full Payment Submission (FPS) files that contain employee leave dates that are more than 30 days from the date that they receive the FPS file. From 24th September 2020, when the FPS is submitted to HMRC, it will not report any leave dates that are more than 30 days after the date of submission.