Pay an employee who starts and leaves in the same period

How to process an employee's pay as a starter and a leaver in the same period, in Sage 50 Payroll.

Sometimes an employee joins your business and leaves in the same period.

This means you only have one period to process for them, in which you'll also mark them as a leaver.

HMRC's guidance for this scenario is:

• Use the tax code 0T on a Week 1 / Month 1 basis
• Enter IO in the pay frequency field
• Don't enter a start or leaving date

However, when you add a new employee to your software, the start date is a mandatory field.

Also, Sage 50 Payroll doesn't include an "IO" option for pay frequency.

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Process in Sage 50 Payroll

We've worked with HMRC to confirm the process you must follow in Sage 50 Payroll:

1. Create the employee's record with their correct start date.
2. Set their tax code as 0T and select the Week 1 / Month 1 checkbox.
   
   TIP:

   0T is the number zero T.

3. Process their payments and update records.
4. Mark the employee as a leaver. Set the leave date the same as the employee's start date.
5. Submit the FPS as normal.

You've now processed this employee's payment and submitted the correct information to HMRC.

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