When an employee leaves your company, you need to make them a leaver in SelectPay and provide them with a P45. When you submit the next full payment submission (FPS), you send the details to HMRC.
📌Note: If the employee has an active parental record, you will need to carry out some additional steps.
Considerations
Before you can process an employee as a leaver, there are a few things you need to consider:
You need to process all payments before you produce the P45, to ensure it contains the correct year-to-date values.
If the leaver is receiving parental pay, you need to enter a finish date in the Parental Pay tab. You can then process them as a leaver in the following period.
If the leaver is a director, to ensure their NI contributions recalculate on a cumulative basis, you need to process pay for them when you make them a leaver.
If you process zero pay when you make the employee a leaver, they may receive a tax rebate.
If the leaver has an active benefit record, you will need to enter the correct available to date to generate the correct benefit calculation.
Process an employee as a leaver
There are two ways to make an employee a leaver. To do this, follow the steps in the relevant section below.
Via the employee record
To make an employee a leaver via their employee record, follow the steps below.
Click Payroll then click Employees.
Click the relevant employee's record.
Click the Current Employment tab.
Enter a date in the Date Left field then click Yes.
Click Yes then, if required, select a reason for leaving.
Click Save & Close then, if a popup appears, click Yes.
Click Next then, if required, click Process Pay.
If required, edit the value in the Last Period Paid field.
Click Next then click Update.
Via the Leavers Wizard
To make the employee a leaver via the Leavers Wizard, follow the steps below.
Click Utilities then click Leavers Wizard.
Read the warnings then click Next.
Search for the relevant employee then click Next.
Select the relevant employee then click Next.
If you need to process pay for the current period, click Process Pay.
If required, amend the value in the Last Period Paid field.
Click Next then click Update.
Process a future leaver
To process an employee as a leaver in a future pay period, follow the steps below.
Click Payroll then click Employees.
Open the relevant employee's record.
Click the Current Employment tab.
Enter a date in the Due to Leave field.
Click Save & Close.
Once you've done this, when you process any subsequent payrolls, a message appears to confirm you have an employee with a future due to leave date.
When the message appears, click Yes then click Next.
If you need to process pay in the current period, click Process Pay.
If required, amend the value in the Last Period Paid field.
Click Next then click Update.