| | Processing an employee who has passed away |
| Description | If an employee passes away, make them a leaver in payroll and process their final pay with no NI deductions. When processing the final pay: - Enter a Finish date in the employee record
- Change the NI category when processing the pay run to X to avoid any NI
- The earnings are still subject to tax using the employee’s normal tax code
- If the employee is a member of a pension scheme, contact the pension provider
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| Resolution | Enter a Finish date in the employee record - 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.
Process the final pay with no NI liability Change the Ni category in their final pay run only, rather than in the employee record. - Process the pay run until the PAY stage.
- Select the employees name in green text to open the Edit employees details dialog box.
- Change the NI category to X (exempt from National Insurance).
- Tick, I understand and wish to change the NI Category.
- Select Save.
- Process the rest of the pay run as normal.
The FPS submitted at the end of your payment run informs HMRC that they’ve left your employment. NOTE: Don't produce a P45. |
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