How to process employees who are leaving in Sage Payroll.
Description
When an employee leaves your company, you must notify HMRC and provide them with a P45. You must also ensure that they’re excluded from any future payroll processing. To do this, you need to make them a leaver.
If you pay your employee in arrears, enter their leave date after you process their payment. This ensures they appear on your pay run for their final payment.
NOTE: If the leaver was in your workplace pension scheme, contact the pension provider. Inform them the employee has left.
Resolution
Make an employee a leaver
▼Make a single employee a leaver - Select Employees from the menu bar.
- Select the relevant employee.
- Under Employment Details, enter the employee Finish Date.
- In the Previous Tax Details section, set the Starting Basis to This is an existing employee.
- Select Save.
You can now process the employee’s final pay and get their P45. Once you run the next payroll, you can't reinstate your leavers.
CAUTION: Ensure your leaver is present in the payment run. If they’re missing, their leave date falls before the current pay run tax period. See section 'The leaver's finish date falls before their last payment run'. ▼Make more than one employees leavers - Select Employees from the menu bar.
- Select Bulk actions.
- Select the relevant employees in the Select Item column.
- Select Add finish date.
- Enter the Finish date for all your chosen employees.
- Select Save.
You can now process the employee’s final pay and get their P45. Once you run the next payroll, you can't reinstate your leavers.
CAUTION: Ensure your leaver is present in the payment run. If they’re missing, their leave date falls before the current pay run tax period. See section 'The leaver's finish date falls before their last payment run'.
Generate a P45
You must give the leaver their P45 after you’ve processed their final pay in this employment.
▼Generate a P45 - Select Employees from the menu bar.
- If you can see the employee in the list, go to step 5.
- Select the Filter button.
- Tick the Include employees who have left checkbox and select Apply.
- Select the employee, then select the Print P45 button at the top right of the page.
TIP: You can print the P45 or save it from your browser options.
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