Payment made to an employee after they have left

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Payment made to an employee after they have left

19th May 2015

IRIS GP Payroll

I need to make an additional payment to an employee after I've sent them marked as a leaver on an FPS.

If you are recalculating the employee’s final pay
(amending the final payslip, not making another payment)

• From the main screen, click on ‘Note an Employee Leaver’:

• Select the relevant employee from the drop-down list of employees
• Select ‘Remove the Leaving Date’:

The system will check if the employee has already appeared on an FPS as a leaver. If they have, a warning message will appear:

‘Are you restoring this employee to make adjustments to their current pay rather than making an additional payment after the employee has left?‘

Note: HMRC systems will now allow you to restore a leaver and continue paying them permanently, without having to set up a new employee record. If the employee was marked as a leaver in a previous tax year you still need to create a new employee record.

• Click‘Yes’ to restore the leaver
• Make adjustments as required to the employee’s current pay period
• Remember to enter the Leaving Date again via ‘Note an Employee a Leaver’ prior to sending the FPS. If you wish to carry on paying this employee (ie. they were set as a leaver by mistake, or they decided not to leave) do not re-enter the leave date, carry on with payroll as normal.

If you are making an additional payment after the employee’s leave date:

• From the main screen, click on ‘Note an Employee Leaver’
• Select the relevant employee from the drop-down list of employees
• Tick ‘Payment after leaving’
• The system will check if the employee has already appeared on an FPS as a leaver. If they have, a warning message will appear:

‘Are you restoring this employee to make adjustments to their current pay rather than making an additional payment after the employee has left? 

Note: HMRC systems will now allow you to restore a leaver and continue paying them permanently, without having to set up a new employee record. If the employee was marked as a leaver in a previous tax year you still need to create a new employee record.

• Click ‘No’ and the following message will appear: 

‘A Full Payment Submission including the leave date has already been sent to HMRC for this employee. Since this is a payment after leaving, the employee’s Tax Code will be set to 0T month 1.’

• Click ‘OK’
• Pay the leaver as needed in the current pay period 
• Remember to enter the Leaving Date again via ‘Note an Employee a Leaver’
• The employee will appear on the next FPS submitted

Please Note: If you have selected to do a payment after leaving by mistake and you are due to continue to pay the employee you will need to restore a backup from before you have restored the leaver. Once you have done this you can remove the leaving date again and select the correct option.