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 Correct a completed pay run.

How it works

Payroll handles the correct tax code to use when making the extra payment. This ensures the employee pays the required amount of tax. Don't produce another P45. This is the recommended HMRC procedure.

Pay employees after they have left

1. Go to the Employees tab.

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

3. Select Apply.

4. Select the employee from the employee list.

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

 NOTE: When you process your next pay run, your employee tax code will show as 0T Week1/Month1. You don't provide another P45. 

When you next run your payroll:

1. Proceed to the Edit pay screen.
2. Select your leaver.
3. Select the name of your leaver above the payments.
   
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.

• Read the article Why is a leaver still showing?
• read the article Pay run corrections