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Karina

How to process negative net pay

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I processed a P45 for a leaver who left on 31/03 with that as his leaver date.  I then paid him his final pay in week 1.  I have been advised to change the tax code to 0T week 1 and make a payment after leaving.  Because of the change in tax code when I refund/correct the pay made in week 1 and re pay with the new code it leaves the pay as a negative net amount and Sage will not process a negative payment.  I'm at a loss as to what to do really and can never get through to HMRC.

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    Hi Karina,

    Thanks for using Sage City.

    Sage 50 Payroll won’t allow you to process negative net pay. In this situation you should deduct as much as you're able to from their final pay to result in £0 net pay, then calculate how much remains to deduct. 

    To deduct this remaining amount, you'd need to rollback into the prior period and take the remaining deduction. You can then produce a new payslip then reprocess the current period with the relevant deduction and £0 net pay then produce a new P45. 

    You can then issue the new payslips and make arrangements to recover the amount overpaid.

    If this helps, please click the ellipsis …, and then click Verify Answer.

    Regards

    Andy
    Sage UKI

*Community Hub is the new name for Sage City