If you processed an employee with gross pay of £0, instead of marking them on hold, you need to correct this. 

Or, if you processed gross pay above £0, when the employee should've been unpaid and on hold, you need to correct this.

Correct an overpayment

If processing £0 gross pay caused a tax rebate, or you accidentally processed gross pay for an employee, you need to correct it.

1. Take note of the most recent process date you processed incorrectly and sent on an FPS.
2. Roll back any periods incorrectly processed when the employee should've been on hold.
    NOTE: To roll back, use our guide on how to use the rollback option. 
3. Double-click the employee on your employee list and click the Employment tab.
4. Note their tax code then change it to 0T, and select the checkbox beside Week 1/Month 1 Basis.
5. Click Save then Close.
6. Click Payroll, then Change Process Date.
7. Set this to the date you noted in Step 1, and click OK.
8. Process £0 pay for this employee and check that no tax rebate calculates.
9. Update records, then submit a full payment submission adjustment.
    TIP: This submits the correct year to date tax values to HMRC for this employee.
10. Open the employee's record and click the Employment tab.
11. Change the tax code back to the original code, including the original week 1/month 1 status.
12. If the employee is still not due any pay, set their status to 'On Hold'. 
13. Click Save, then Close.
14. Issue new payslips to the employee, with £0 net pay, and agree with how to recover any overpayment.

You've now corrected this issue, and can continue to process as normal. If you need to pay the employee on hold, change their status back to OK, then process and submit their payroll as normal.