Processing an employee with a redundancy payment may require the payment to be processed under a separate pay element, where PAYE and or NIC check boxes are unselected.
🤓Tip: If you're questioning whether the PAYE and or NIC checkboxes should be unselected, reach out to HMRC, who will be able to advise on your specific scenario.
Create a new pay element, with the required checkboxes selected.
📌Note: If the payment is over £30,000.00, you will need to create another pay element for the value over this.
Assign the pay element to the relevant employee.
Enter the required payments.
Click Payroll, and then click Run Payroll.
Check the employees' pay.
📌Note: If further changes are required, make them at this point.
Process the employee as a leaver.
When you're ready, process the payroll.