This explains how to pay employees who no longer work for you. You may need to do this if the employee receives a National Pay Award that backdates a pay rise, for example.

Before you begin

• The Payment after leaving option is only available to employees with a status of Ceased employment

   

• Don't use this article if you need to amend an employee's pay from a prior period. When this happens, edit the previous pay run instead. 
  Read how to Make changes to a completed pay run.

How it works

The employee must be paid using a 0T week1/month1 tax code. This ensures the employee doesn't receive additional tax free allowance.

Temporarily activate the leaver record

1. Select Employees from the menu bar.

2. Select the Filter button and tick the Include employees who have left check box.

3. Select Apply.

4. choose the employee from the employee list.

5. Tick the check box for Payment after leaving and select Save.

When you next run your payroll:

1. Proceed to the PAY screen.
2. Select your leaver.
3. Select the name of your leaver in green text..
   
4. Change the Tax Code to 0T (zero T), and tick in the Week1/Month1 box.
   
5. Select Save.
6. Pay the employee the required funds, and complete the pay run as usual.

 NOTE: You don't produce, or supply the employee another P45.

Why is a leaver still showing?