Make an employee a leaver and produce their P45

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

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

Do this after you process the employee's final pay, but before submitting the full payment submission (FPS).

Watch the video

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Before you continue

Check if your employee has:

• Director status of Director (Pro Rata basis)
• A cash rounding amount, and you pay them in cash
• Outstanding items, for example, an attachment or statutory payment
• A holiday fund
• A tax refund withheld due to a trade dispute

If they are, check the special considerations for an employee's final pay article for further information before you continue.

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Mark your employee as a leaver and print their P45

1. Select Payroll then Change Process Date.
2. Change the Process Date to the employee's leave date then select OK.
3. Double-click the required employee.
4. Go to the Employment tab, then select Leaver.
5. Select Next, then enter the employee's leaving date.
6. On the select your stationery list, choose P45 - Plain paper (for e-Submissions).
    TIP: This report prints onto plain paper. You don't need P45 stationery.
7. Click Preview, then check the details on the report.
8. Select Print, then OK.
9. Click Close then click Finish.
10. Click Payroll then click Change Process Date.
11. Change the Process Date to your current process date, then select OK.

 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.

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Submit to HMRC

You can now submit the full payment submission (FPS) as normal for the pay period. Or, if you've already done this, Submit an FPS adjustment.

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

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How to handle leavers in Online Services

If you use Online Services and mark an employee as a leaver in Sage 50 Payroll, process them as a leaver in Online Services separately.

For help with this, click the relevant option below.

 

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Workplace pensions

If your leaver is a member of your workplace pension scheme, you must notify your pension provider when the employee leaves.

You could do this by this using your pension provider's online portal. For help with doing this, contact your pension provider.

Pensions Module

The Pensions Module includes a Send Pension Data feature, to send enrolment and contribution details to your pension provider.

Whether you use Pensions Data Exchange, or you create a file to upload to your provider manually, your software doesn't include leave dates.

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