Process a leaver

Summary

Find out how to process an employee as a leaver 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.

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 >

Watch the video

Process your employee's final pay

The first step is to process the leavers final payments >

Click Payroll, then click Change Process Date.
Enter the required pay date, then click OK.
Select the employees you want to pay, then click Enter Payments.
Enter the payment details for any other employees in the pay run as normal.
For the employee who has left, enter their final payment details.
Click the Select this check box if your employee is leaving and this is their final payment check box.
NOTE: When you select this check box, any outstanding payments, such as statutory payments calculate automatically.
If required, check and pay any outstanding amounts due, such as holiday pay then click Close.
Print any of your normal pre-update reports, such as payslips and payment summaries, as usual.
Update records for your employees for the pay period.

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 mark the employee as a leaver >

Click Payroll then click Change Process Date.
Change the Process Date to the employee's leave date then click OK.
Double-click the required employee.
Click the Employment tab, then click Leaver.
Click Next, then enter the employee's leaving date.
On the select your stationery list, click P45 - Plain paper (for eSubmissions).
TIP: This report prints onto plain paper. You don't need P45 stationery.
Click Preview, then check the details on the report.
Click Print, then click OK.
Click Close then click Finish.
Click Payroll then click Change Process Date.
Change the Process Date to your current process date, then click OK.

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 Sage HR

When an employee leaves, you may need to terminate them in Sage HR - Terminate an employee's profile - Sage HR Online Services >

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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Manage your employees’ taxable benefits easily and accurately, with online submissions to HMRC. Deadline for P11D submission is July 6 2023.

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