Leaver that hasnâ€ t been paid in this tax year

Question

Hello. We have some employees on the payroll that did not work at all in this tax year and we would like to make them leavers before Year End. What would be the best method? And what date should I put on the P45 as I do not know when was their last day of work in the previous tax year.
Also, some employees worked for us in June 2016 but havenâ€ t work since then. Weâ€ ve paid the holiday pay due to them in November. Now I want to make them leavers, what date should I use on the P45? Should I use June, November or current processing date? Thank you, Adriana

Paul Morgan · Accepted Answer

Hi Adriana, 
 You can set the employee&rsquo;s tax code to 0T week 1/month 1 basis first, but you don&rsquo;t have to. Yes you should use your process date as the leave for these employee&rsquo;s. 
 For the employees that last worked for you in June, you should enter the day they last worked for as their leave date. This is the date that will appear in their P45.

Paul Morgan · Answer

Hi Adriana, 
 If, when making an employee a leaver, the employee isn't due a final payment and hasn't been paid at all in the current tax year, you must first update the employee with zero values in that tax year before making them a leaver. You can then produce the P45 and submit an FPS as normal. 
 For full info you can refer to article 28747 .

Sage 50 Payroll

Leaver that hasnâ€ t been paid in this tax year

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