Use these steps to pay a former employee money owed after they leave, such as a National Pay Award.
For payments made after an employee has already left, use the tax code 0T with Week 1/Month 1. This ensures the employee doesn't receive any extra tax-free allowance.
Use this tax treatment only for a payment after leaving. Don't use it for the employee's final pay before they leave.
Cause
Resolution
Temporarily activate the former employee record
Select Employees from the menu bar.
Select the Filter button and tick the Include employees who have left checkbox.
Select Apply.
Choose the employee from the employee list.
Under Employment details, tick the Payment after leaving checkbox, and select Save.
When you next run your payroll:
NOTE:
You can't change an employees tax code in Enhanced pay run. Switch to Standard pay run to perform this.
Proceed to the PAY screen.
Select your leaver.
Select the name of your leaver in green text.
Change the Tax Code to 0T (zero T), and tick in the Week1/Month1 box.
Select Save.
Pay the employee the required funds, and complete the pay run as usual.
NOTE:
You don't produce, or supply the employee with another P45.
