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Payments after leaving

Article ID
11209
Article Name
Payments after leaving
Created Date
1st January 2019
Product
Earnie, IRIS Payroll Professional
Problem

How do I make a payment after leaving?

This applies to either adjusting an employee's final payslip, making a one-off additional payment or restoring a leaver to return to the payroll permanently, AFTER an FPS with the leaving date has been sent to HMRC.

If the FPS including the leaving date hasn't been sent to HMRC simply restore the employee from "Employee" > "P45 Routines" > "Restore Leaver". Make any necessary adjustments to the employee and save the leaving date again as normal.

Resolution

If you are recalculating the employee’s final pay:

• Click on the ‘Employee’ menu
• Select ‘P45 Routines’, then ‘Restore Leavers
• Select the relevant employee from the list and click ‘OK

The system will check if the employee has already appeared on an FPS as a leaver. If they have, a warning message will appear:

‘Are you restoring this employee to make adjustments to their final pay rather than making an additional payment after the employee has left?

• Click ‘Yes‘ to restore the leaver
• Make adjustments as required to the employee’s current pay period
• Remember to reissue the P45 when you are finished


PLEASE NOTE: HMRC systems will now allow us to restore a leaver permanently providing they were set as a leaver in the current tax year. If the employee was a leaver in a previous tax year you cannot restore them and need to set them up with a new employee record.


If you are making an additional payment after the employee’s leave date:

• Click on the ‘Employee’ menu
• Select ‘P45 Routines’, then ‘Restore Leavers
• Select the relevant employee from the list and click ‘OK

The system will check if the employee has already appeared on an FPS as a leaver. If they have, a warning message will appear:

‘Are you restoring this employee to make adjustments to their final pay rather than making an additional payment after the employee has left?

• Click ‘No‘ and the following message will appear:

‘A Full Payment Submission including the leave date has already been sent to HMRC for this employee. Since you have indicated you are making a payment after leaving, the employee’s Tax Code will be set to 0T week1/month1.’

Click ‘OK’ and the system will allow you to restore the employee but change their Tax Code to 0T week 1/month 1

• Pay the leaver as needed in the current pay period
• Remember to reissue the P45 with the original leave date, you DO NOT print a fresh copy for the employee.
• The employee will appear in the next FPS

PLEASE NOTE: For payments after leaving the NIC calculation is unchanged and works just as it would for a regular payment. 

PLEASE NOTE: HMRC systems will now allows us to restore a leaver permanently providing they were set as a leaver in the current tax year. If the employee was a leaver in a previous tax year you cannot restore them and need to set them up with a new employee record.

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