If you pay the additional amount in the next pay run you process, you need to prepare the employee's record. This is to ensure they don't pay too much tax.

1. Select the relevant employee or director on your employee list.
2. Click Employee, then click Employee Record.
3. Go to the Employment tab and amend the following information:

   Leave Date	Make a note of this date then remove it.
   Tax Code	Enter 0T and select the W1/M1 check box.

4. Click Save, then click Close.
5. Click Payroll, then click Change Process Date.
6. Set the process date to the date of the payment.

To process this, follow the steps below to rollback their most recent payment then continue to the process the extra payment section.

1. Take a backup of your data.
2. Select the required employee on your Employee List.
3. Select Tasks then Rollback.
4. Select Next then Next.
5. Select the earliest pay period that you want to remove.
6. If a message asks if you want to clear year to date values, select No.
7. Select Next then Finish.
8. Select OK.
9. Select Payroll then Change Process Date.
10. Set the process date to the date of the payment.

Process their final payment with no National Insurance (NI) using the steps below.

1. From the employee list, double-click the relevant employee.
2. Click the Employment tab, from the NI Category drop-down, select X.
3. Click OK, then click Save.
4. Click OK, then Close.

Process a payment without NI liability

Next, process their payments.

1. Select the relevant employee.
2. Click Payroll, then click Enter Payments.
3. Enter the required value as normal.
4. Change the Hours/No for any other unused payments to zero.
5. Select the checkbox beside Select this check box if your employee is leaving and this is their final payment.
6. Continue to process any other employees.
7. Click Save/Next, then click Close.
8. If required, print any pre-update reports.
9. Click Update Records.
10. Click Yes, then click Next.
11. If applicable, post the nominal link.

HMRC rules require you to calculate NI as normal on final payments to a director who has died. Process their extra payment without changing their NI category.

 NOTE: An exception is if the director's circumstances mean they already didn't pay NI, for example due to their NI category. 

When you enter their payments, select the checkbox beside Select this check box if your employee is leaving and this is their final payment.

Once you process this payment and update records, continue to the mark as a leaver and notify HMRC section.