Step 4: Mark employees as leavers

Step by step guide to running a payroll

If no employees have left during this pay period, skip this step and go to Step 5: Open the payroll run.

Employees leaving this pay period must have their record updated to mark them as leaving or left. A P45 A P45 is a document issued by an employer to an employee when they leave a job. It shows details about the's employment, including their start and end dates, how much they were paid, and how much tax they paid during their employment. The is made up of four parts: Part 1 is sent to HM Revenue & Customs (HMRC), Part 1A is kept by the employer, and Parts 2 and 3 are to the employee as a record of their earnings and tax paid. The P45 is an important document that employees need to give to their new employer when they start a new job as it provides information about their tax code and previous earnings, which helps the employer calculate their tax and National Insurance contributions. is produced for the employee later in the process.

Processing a leaver

  1. Go to Employees.

  2. Select the required employee.

    If more than one employee has left, go to Multiple leavers to process more than one without going into each record. If the employee needs to be paid after they have left, make a payment after leaving.

  3. Select Employment.

  4. Select Employee has left.

    The Employment screen in the Employees menu, with Employee has left highlighted.

  5. Enter the Leave Date.
  6. If the employee died You must make all outstanding payments when an employee dies. - put the date the employee died into the ‘Date of leaving’ field. - final payments are subject to tax, so use the employee's existing tax code. - final payments are not subject to national insurance, so use NI letter X (unless your payroll software automatically takes zero rate employee's national insurance in the circumstances). - do not produce a p45. Payments to a person who has died are usually made to the personal representative or executor of that person’s estate., Employee is deceased must also be selected, as it is part of the reporting process.
  7. If required, select Add a Payment after leaving or Pay Accrued Holiday Balance.
  8. Select Update Employee.

Pension contributions are taken from the payment if the employee meets the criteria and is already a member of a scheme.

Step 5: Open the payroll run.