How to process employees who are leaving, in Sage Payroll.
Description
When an employee leaves your company, you must 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 a single employee a leaver
- From the Employees tab, select the employee.
- Enter the employee Finish Date.
- In the Previous Tax Details section, set the Starting Basis to This is an existing employee.
- Select Save.
Make multiple employees leavers
- From the Employees tab, select Bulk Actions.
- Select the relevant employees in the Select Item column. Select Add finish date.
- Enter the Finish date for all of 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.
You must give the leaver their P45 after you’ve processed their final pay in this employment.
- Select the Employees tab.
- 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's record, 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.
For example, the leaver's finish date may be 30th September, but you have money to pay them in the 5th October payment run.
Enter the finish date after the pay run is complete.
- Finish your pay run.
- From the Employees tab, select the employee.
- Enter the employee's Finish Date.
- In the Previous Tax Details section, set the Starting Basis to This is an existing employee.
- Select Save.
You can now issue employee their P45.
HMRC will be informed about the leaver on the next payment run.
If you have completed the payment run and the employee informs you they are leaving:
- Select the Employees tab.
- Select the employee.
- Enter their finish date.
- In the Previous Tax Details section check the Starting Basis. Make sure it is set to This is an existing employee.
- Select Save.
You can now get the leavers P45.
HMRC will be informed about the leaver on the next payment run.
If you have completed their final pay run and you have submitted the FPS for that period:
- Mark the employee as a leaver as normal
- Process the next pay run as normal
When you process the pay run, HMRC will be informed about your leaver.
If you mark an employee as a leaver but have not completed a pay run, you can reinstate their employee record.
Once reinstated, they can begin to receive payslips again.
- From the Employees tab, select the employee you want to reactivate.
- Under Employment Details, in the Finish Date box, remove the date.
- Select Save.
If you’ve submitted your FPS to HMRC, you must contact us to reactivate the employee's record.
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