Solution Properties
Solution ID:
230929121458927
Last Modified Date:
Mon Nov 25 16:05:30 UTC 2024
Taxonomy Path:
Case category//How do I...//processing
Author:
[email protected]
Processing an employee who has passed away
Description

If an employee passes away, make them a leaver in payroll. Process their final pay with no NI deductions.

When processing the final pay:

  • The earnings aren’t subject to national insurance (NI)
  • The earnings are subject to tax using the employee’s normal tax code
  • If the employee is a member of a pension scheme, contact the pension provider. Check if you should deduct a pension contribution
Cause
Resolution

Process payments without NI liability

To do this, create a new salary payment which is taxable but exempt from NI:

  1. From the Settings tab, select Payments & Deductions.
  2. From the Payments tab, select Create New Payment.
  3. Enter the details of the new payment as follows:
Payment Category Select Salary from the drop-down list.
Payment Type Select Taxable Non-NIable from the drop-down list.
Name Enter the name of the payment you want to appear on payslips.
Description Enter any text to explain the purpose of the payment.
Include in Calculation of: If you need to deduct pension contributions, select the following as appropriate:
  1. Select Save.

Now process the employee as a leaver in the next pay run.

Ensure you use the new payments or deductions at the edit pay stage.

The FPS submitted at the end of your payment run informs HMRC that they’ve left your employment.

 NOTE: You don't need to produce a P45. 

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