How to process a leaver.

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How to process a leaver.

18th April 2016

IRIS PAYE-Master

How do I process leavers?

Under RTI the P45 information is no longer sent as a separate submission but is included with the FPS information.

First, make sure you have your final pay variations for the employee saved and calculated. Produce your regular summary and payment reports and confirm you are happy with the final pay for the employee.

Once you’re happy with the final pay open up the employee details >”General” tab

Record the leave date in the appropriate field and click “Save“.

Click “OK” on the tip message.

You will then be taken to the “Starter / Leaver” tab in the employee details.

Make sure the “Leaver” option is selected down the left-hand side.

Click “Save“. 

Don’t forget to print the p45 parts 1a, 2 and 3 for the leaver to take to their new place of work, click “Print P45” from the starter/leaver tab. Because you have made changes to an employees details since you ran the payroll the system will prompt you to recalculate the period before you print the P45, click “Yes” when prompted.

This employee is now flagged as a leaver and their final pay details will be included in your next FPS submission.

Do I make an employee a leaver before or after I have sent the FPS?

You make an employee a leaver after you have done the payroll and ran BACS, but before the FPS. That way they are marked as a leaver on the FPS along with their final payment. If you make an employee a leaver after sending the FPS, they will appear in the next pay period’s FPS. Depending on when the leaver was last paid HMRC could then recognise this as a late submission.