When an employee leaves your company, you must notify HMRC and provide them with a P45. Also ensure that they’re excluded from any future payroll processing. To do this, you need to make them a leaver.
CAUTION:
Don't change the employee to 0T Week1/Month1 for final pay when they’re leaving. Use 0T Week1/Month1 only for payments made after the employee has already left.
If you pay your employee in arrears, enter their leave date after you process their final payment. This ensures they appear on your pay run. The next Full Payment Submission (FPS) includes their leaver information.
NOTE:
If the employee was in your workplace pension scheme, tell the pension provider that the employee has left.
Cause
Resolution
Make an employee a leaver
You can either process an individual employee as a leaver or do it in bulk.
If you need to make a final payment to the employee, ensure they’re present in the pay run. If they’re missing, their leave date falls before your selected pay date. Read Processing leavers FAQs for more information.
Make a single employee a leaver
Select Employees from the menu bar.
Select the relevant employee.
Under Employment Details, enter the employee Finish Date.
In the Previous Tax Details section, set the Starting Basis to This is an existing employee.
Select Save.
You can now process the employee’s final pay and get their P45. Once you run the next payroll, you can't reinstate your leavers.
Make multiple employees leavers
Select Employees from the menu bar.
Select Bulk actions.
Select the relevant employees in the Select Item column.
Select Add finish date.
Enter the Finish date for all your chosen employees.
Select Save.
You can now process the employee’s final pay and get their P45. Once you run the next payroll, you can't reinstate your leavers.
Generate a P45
Give the leaver their P45 after you’ve processed their final pay in this employment. For more information, read Export or print the P45.
Frequently asked questions
For a list of questions and scenarios relating to making an employee a leaver, read the Processing leavers FAQs.
For a list of questions and scenarios relating to making an employee a leaver, read our Processing leavers FAQs.