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Process Leaver P45 Final Payrun

Use

When processing the final payrun all outstanding pay administration should be deducted or paid up until the leaving date, this includes redundancy pay and any outstanding holiday pay. This is because once the Leaver process is complete it is not possible to process any additional payrun for the employee without first doing a rollback.

As part of the leaver process, you will be required to run and update the final payrun for the employee, including holiday payments, redundancy payments etc. where applicable. A P45 will then be produced which can be printed and/or E-Filed.

Path

Employee > Leaver Administration > Process Leaver P45 > Continue

OR

Bureau Main Page > Admin Payrun > Enter > Employee > Leaver Administration > Process Leaver P45 > Continue

OR

Multi-Sites Payroll Starter > Head Office Details > Employee > Leaver Administration > Process Leaver P45 > Continue

Fields Available

• Works No.: The works number of the employee whose P45 has to be processed will be displayed here.
• Last YTD: The last pay period for which the Year To Date (YTD) has been updated for the selected employee will be displayed here.
• Employee Name: The employee's name whose P45 has to be processed will be displayed here.
• Basic Pay: This is the employees normal wage rate excluding non-regular payments i.e. bonus, commissions, or non-regular deductions i.e. SMP, AEOs.
• • Hours/No: If you have set the default number of hours to calculate the basic pay of this employee, then it will appear here. If you have not set, then enter it here.
  • Rate: If you have set the default amount of basic pay for this employee, then it will appear here. If you have not set, then enter it here.
• Overtime: Overtime refers to extra payments made to employees for working in excess of contracted hours. It is often paid at an enhanced rate. For example, at time-and-a-half which is 50 per cent more than the normal rate, or at double time which is twice the normal rate.
• • Hours: If you are paying any overtime payment to this employee, then enter here the number of hours for the overtime payment.
  • Rate: Enter here the amount of overtime payment being made to this employee.
• Other Payments: Use the link provided below to enter other types of payment for this employee, for example, holiday payment, SSP or SMP payment etc.
• Deductions & Pension: Use the link provided below to enter the various deductions including pension deduction for this employee, for example, student loan, trade union subscription, payroll giving etc.

Redundancy & Other Payments

• Unused Holiday Payment: The amount of payment made to the employee for the unused holiday (s).
• Taxable Redundancy Pay: If the employee is terminated due to redundancy, then enter here the redundancy payment that is taxable. If the amount you are paying is up to £30000, it is tax free. If it exceeds that, only the excess is taxed. (for example, out of a £45000 payment, only £15000 is taxed)
• Non- Taxable Redundancy Pay: If the employee is terminated due to redundancy, then enter here the redundancy payment that is not taxable. If the amount you are paying is up to £30000, it is tax free.
• Trivial commutation lump sums (TCLS): A trivial commutation pension payment is a one-off lump sums that pay off or is paid in place of a small pension, so that there's no need to make the usual weekly, monthly or annual payments. 25% will be free of tax and the remaining 75% will be taxable as normal income in the year in which it is paid. Here you can enter the taxable amount of Trivial commutation lump sums (TCLS).
• Small pot lump sum payments from personal pension schemes: If your pension pot is small you may prefer to take it all as a lump sum rather than using it to get a pension. Here you need to enter the amount of Small pot lump sum payments from personal pension schemes.
• Small pot lump sum payments from occupational pension schemes: Here you can enter the amount of Small pot lump sum payments from occupational pension schemes.
• No. of Days: When an employee leaves your employment the exact figure of accrued holiday owed should be paid to them. This field displays the number of unused holidays (if any) for the employee.
• Include in gross pay for,
• • PAYE purposes: You can view whether Redundancy and other payments are included in Gross Pay before the PAYE tax is calculated or after the PAYE tax is calculated.
  • NIC's purposes: You can view whether Redundancy and other payments are included in Gross Pay before the NIC is calculated or after the NIC is calculated.
  • Pension purposes: You can view whether Redundancy and other payments are included in Gross Pay before the pension contribution is made or after the pension contribution is made.

Associated Tasks

• Back: If you wish to exit this screen without saving the changes, click on this button.
• Process Pay: If you are sure about the entries made and would wish to process the pay, click on this button.

Related Topics

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