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 the employee on hold status before processing payroll for the unpaid period:
Once you've put the employee on hold, select the Include checkbox on your next FPS.
When your employee has earnings you need to pay, change their status back to 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.
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.
When you submit the first FPS in the new tax year, use the pre-submission checkboxes to include any employees on hold.
When you set an employee on hold, include them in your next FPS using the checkbox on the window that appears.
Once you submit an FPS for an employee on hold, Sage 50 Payroll omits them from your submissions. When you take the employee off hold and process their pay, your software includes them in the next FPS automatically.
Use our article to correct an overpayment for an employee on hold.
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