Before you make an employee a leaver and produce their P45, there are some things that you need to consider.

Final payments

Does the employee's final pay include all outstanding payments and deductions? For example, have you paid outstanding holiday pay or overtime?

Year end

If the employee left in a previous tax year, follow our article for leavers last pay date and leave date are in different tax years.

Statutory payments

Has the employee received all of the statutory pay they're entitled to? For example, if an employee is receiving Statutory Maternity pay (SMP) and leaves your employment, they can still be eligible to receive the remaining SMP.

Paying early?

Are you paying the employee part-way through the pay period? For example, you pay the employee at the end of the month but they're leaving at the beginning of the month.

You can process a leaver earlier than your other employees. Find out how in our pay a leaver mid month article.

National insurance (NI) status

Has the employee died? If so, their final pay isn't subject to NI. Process final payments for an employee who has died.

Director status

Is this employee's director status set to Director (Pro-Rata basis)? If so, you need to calculate the National Insurance in their final payment on a cumulative, year to date basis.

To do this, select the Employee is leaving and this is their final payment checkbox in Enter Payments.

Completed the pay run?

Have you processed the employee's final payment and finished payroll? For the P45 totals to be correct, you must finish payroll for the employee's final pay before producing the employee's P45.

Further information

In some situations the employee won't receive their entire statutory payment entitlement. If you're unsure about your employee's entitlement, contact the Employer Helpline on 0300 200 3200.