This is especially important if the employee:

• Has a director status of Director (Pro Rata basis)
• Is paid in cash and has a cash rounding amount
• Has a holiday fund
• Has a tax refund withheld due to a trade dispute
• Has outstanding items, for example, an attachment or statutory payment

The Select this check box if your employee is leaving and this is their final payment checkbox is found in Enter Payments. Find out below what this option does when you select it.

Director (Pro rata basis)

Directors' national insurance (NI) legislation requires calculation of NI to be on a cumulative, year to date, basis. By selecting this check box, the NI due for Pro rata basis directors is recalculated using earnings to date and annual NI bands so at the point of leaving, the correct NI is paid. This may mean that the NI calculation in the final period is different from what is normally calculated.

This doesn't apply to employees with a director status of Director (Annual basis) as their NI is calculated cumulatively.

Paid in cash

Employees with a payment method of cash may have their net pay rounded to the value set in Cash Rounding within the company settings. By selecting the Select this check box if your employee is leaving and this is their final payment check box, the exact net pay due is calculated including any cash rounding carried forward. To check the cash rounding carried forward for the employee:

1. Double-click the employee then click the Employment tab.
2. Click YTD Values then click Other YTD.
3. Check the Cash Rounding C/F amount.

Final payment box not selected

If you process a Pro rata basis director's final payment without selecting the final payment checkbox, their NI is not calculated cumulatively. If you then mark them as a leaver an error appears that states:

'The last period must be reprocessed using a YTD calculation.

To resolve this, you need to reprocess their final payment and select the final payment checkbox. You can then finish reprocessing the director's final payment then mark them as a leaver. 

If you'd like new totals for all employees on your reports, use Recover to return to before you updated records. You can then correct the director's final pay and print new reports for all employees. Restore an automatic Recover backup >

Alternatively, if you'd prefer to reprocess the director only, you can use Rollback. Correct a previous payroll run >

Holiday fund

If an employee has a holiday scheme with a holiday fund assigned, selecting the check box calculates the balance of any holiday fund owing to, or to be paid back by, the employee. To check this amount:

1. Double-click the employee then click the Employment tab.
2. Click YTD Values then click Other YTD.
3. Check the Holiday Fund amount.

Tax refund withheld due to trade dispute

If an employee has a status of trade dispute, they are not paid any tax refunds due. Selecting the check box pays any tax refund withheld during a trade dispute. To check the tax refunds withheld:

1. Double-click the employee then click the Employment tab.
2. Click YTD Values then click Tax.
3. Check the Tax Refunds Withheld amount.

Employee has outstanding items

If an employee has outstanding holidays or statutory payments, when you click Save/Next in Enter Payments a message appears advising that there are amounts outstanding. To view the amounts, on the message, click Preview.