What to do when an employee dies?
Article ID
11071
Article Name
What to do when an employee dies?
Created Date
6th April 2017
Product
IRIS PAYE-Master
Problem
How do I report to 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’s date of death.
Record the deceased date in the employee details under the “General” tab:
When you save the change you will see the system automatically set the “Leave Date” to match.
If there is outstanding pay to be processed for the employee this should be run on NI rate X.
Go to “NI Details” tab. Copy the “Current Table Letter” details into “Previous Table Letter” using the arrow button between the 2 columns.
Set “Current Table Letter” to “X: No Liability” and “Since Tax Week” to the tax week number the date of death fell in:
Process the final pay and send the FPS as normal. You do not need to produce the P45 printout.
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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