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What to do when an employee dies?

Article ID
11069
Article Name
What to do when an employee dies?
Created Date
6th April 2017
Product
IRIS GP Payroll
Problem

How do I inform the HMRC when an employee dies?

Resolution

HMRC have not included a “date of death” field or “deceased indicator” on the FPS.  You should make the deceased employee a leaver and make the leaving date the employee date of death.

In payroll treat them as you would any normal leaver but record the leaving date to match the employees’ date of death.

Any outstanding payment due should be taxed as normal but should not have NI deducted. If making a payment set the employee NI code to X in their details record before calculating.

If you need to pay someone after you’ve sent an FPS with their ‘Date of leaving’ (the date they died) you would treat this as a payment after leaving, click here for details.

Payments to a person who has died are usually made to the personal representative or executor of that person’s estate.

NOTE: You do not give the personal representative a form P45.

Guidance from gov.uk website:

You must make all outstanding payments when an employee dies.
Put the date they died into the ‘Date of leaving’ field in your next Full Payment Submission (FPS), and deduct tax using their existing tax code. Don’t deduct and pay National Insurance or produce a P45.

Full link here:-

https://www.gov.uk/what-to-do-when-an-employee-dies/paying-employee-died

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