Set whether an employee is on hold

If an employee doesn't earn pay in one or more periods, set their status to on hold.

When an employee's on hold, submit the full payment submission (FPS) to inform HMRC.

Put an employee on hold

Put the employee on hold status before processing payroll for the unpaid period:

1. On the employee list, double-click the required employee.
2. Click the Employment tab.
3. In the Status dropdown list, select On Hold.
4. Click Save then click Close.

Once you've put the employee on hold, select the Include checkbox on your next FPS.

Change an employee's status to OK

When your employee has earnings you need to pay, change their status back to OK.

1. On the employee list, double-click the required employee.
2. Click the Employment tab.
3. In the Status dropdown list, select OK.
4. Click Save then click OK.

If an employee is on hold and not updated for one pay period, you'll see this message in Enter Payments:

'Some of your selected employees have not been updated for the previous pay period. Your tax may be incorrect if you miss an update.'

This is correct, as you didn't pay the employee when they were on hold.

Employees on hold at Payroll year end

You can keep employees on hold while you process your year end. This doesn't affect your year end submission.

Produce a P60 for employee's on hold over year end.

New tax year

When you submit the first FPS in the new tax year, use the pre-submission checkboxes to include any employees on hold.

Full Payment Submission (FPS)

Each FPS you submit when an employee is on hold let's you select whether you include them in the submission.

After you set the employee on hold, include them in your next FPS. When you start to pay them again, process their pay and submit the FPS as normal.

Employee processed incorrectly

Use our article to correct an overpayment for an employee on hold.

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