Overview
The following article explains how to pay an employee who has been issued a P45. By using the Add Leaver option the employee will be reinstated for 1 payroll on a 0T tax code with a Week1/Month1 marker. National Insurance will be calculated on a weekly basis regardless of the pay frequency.
No second P45 is produced, and the relevant information will be sent to HMRC on the FPS on completion of Payroll. The employee should not be rehired.
Process
Fig.1 - The Add Leavers button
When returning to the current pay run, the employee will display with a number (see Fig.2) indicating that they have left the company and are receiving an additional payment.
In the bottom right corner of the screen there is a numbered list of reasons why the employee might have been included on the pay run - this relates to the number displayed next to the employee.
The pay run can then be completed as usual.
The following article explains how to pay an employee who has been issued a P45. By using the Add Leaver option the employee will be reinstated for 1 payroll on a 0T tax code with a Week1/Month1 marker. National Insurance will be calculated on a weekly basis regardless of the pay frequency.
No second P45 is produced, and the relevant information will be sent to HMRC on the FPS on completion of Payroll. The employee should not be rehired.
Process
- In Payroll, select the current pay run
- Select Add Leavers
Fig.1 - The Add Leavers button
- Search for the employee by Employee Number or Surname
- Select the employee using the tick box and save
When returning to the current pay run, the employee will display with a number (see Fig.2) indicating that they have left the company and are receiving an additional payment.
In the bottom right corner of the screen there is a numbered list of reasons why the employee might have been included on the pay run - this relates to the number displayed next to the employee.
Fig.2 - The numbered list of reasons for being included on the pay run
- Ensure that the relevant payment type is listed within the employees’ record and create a new one if necessary, entering in the amount to be paid.
- To do this, go to Payroll > Employees > Search for and Select Employee > Employee Payroll Info > Payment Types > Create a New Payment Type
The pay run can then be completed as usual.
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