How do I process a leaver?

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How do I process a leaver?

6th April 2018

IRIS Bureau Payroll, IRIS Payroll Business

I have a leaver in my company, how do I report this to HMRC under RTI?

Under RTI you no longer need to send a separate p45 document to the HMRC, all the leavers details go along with the regular FPS submission you make whenever you run a payroll. You still produce a p45 for the employee.

In terms of the payroll cycle the process would be:

• Enter Variations
• Calculate Payroll
• Produce reports (Summaries, Payslips, Pensions, etc.)
• Create BACS payments file (if applicable)
• Mark employees as leavers (and produce P45’s)
• Send Full Payment Submission (FPS)
• Finalise period

To set an employee as a leaver

Highlight the name of the leaver in the list down the left-hand side of your screen and click the “p45 leaver” button from the employee tab.

Enter the employees leave date. Click “Print” to produce the P45 Part 1a, 2 & 3 for the employee to take to their next place of work. Click “OK” to finish the process and set this employee as a leaver.

You should now see the leaver name turn red in the list. The system recognises they are a leaver and will send the relevant leaving information on the next FPS.

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.