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Process a leaver and produce their P45

Created on  | Last modified on  Highlight Matches

Summary

How to process an employee as a leaver and produce their P45 in Sage 50 Payroll.

Description

When an employee leaves your company, you need to provide them with a P45 and inform HMRC.

To do this, after updating their final payment, but before submitting the full payment submission (FPS), you must mark them as a leaver.

Resolution

Before you start, visit our guide on what to consider before processing an employee as a leaver >

Once you've done this, you're ready to process your employee's final pay and process them as a leaver.

If the employee left in a previous tax year, follow the process in our leavers last pay date and leave date are in different tax years guide.

NOTE: If you have an employee who's leaving earlier than your normal pay day, you can follow our guide to Pay a leaver mid month >


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Process your employee's final pay

The first step is to 

After you process the payment and update records, you must mark the employee as a leaver. You can then print their P45 before you submit your FPS for the period.


Mark your employee as a leaver and print their P45

Before you process the employee as a leaver, you need to set your process date to the employee's leave date. This ensures the correct tax code and values are on their P45. 

You can now

 NOTE: The P45 includes the values from any payments in the tax year that the leave date falls. To find out more, visit Gov.UK > 


Submit to HMRC

You can now Submit the full payment submission as normal for the pay period. If you've already submitted the FPS for the period, simply submit a submit a full payment submission adjustment >

If an employee on hold has left, follow the steps in our employees on hold who have now left guide.


Remove leaver from Online Services

If you use Sage HR Online Services

When an employee leaves, terminate the employee's profile in Sage HR Online Services so they no longer appear as an active employee in this portal.

If you use Online Bureau

Remove the employee's services, then delete the employee from Online Bureau.


Workplace pensions

If your leaver is a member of your workplace pension scheme, you must notify your pension provider when the employee leaves. For help with this, please contact your pension provider.

 NOTE: If you're using the Pensions Module to Send Pension Data to your provider, the employee's leave date isn't included when you send your pension data. 


You've now successfully marked your employee as a leaver. For more helpful guides like this one, visit the Help Centre >


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