How do I deal with redundancy in the payroll?

Summary

The following article explains how to post redundancy on your payroll system.

PLEASE NOTE : Regarding the tax rules on redundancy pay, these are the guidelines as we understand them. For definitive help contact the HMRC or speak to your company accountant.

More Information

• Let the payroll system calculate the person's wage for the final pay period in the normal way.
• If the person is receiving paid redundancy, work out this amount out manually and enter as a "Post Tax add.(+)" (unless the amount is more than £30,000 ,when it is both taxable and applicable to National Insurance).
• Close the payroll period as normal.
• In the following week enter them as a payroll leaver using "Payroll" -> "Payroll Parameters/Maintenance" -> "Payroll Parameters" -> "Enter Payroll Leavers".
• Enter the employee code and the leaving date and press <F7>.
• This will bring up the following message

“Have you closed the last period in which this employee should be paid?"

                        YES                 NO

Because you have done this in the previous step click [YES].

• Once this is done, the system will print a P45 then press <Esc> and press <Esc> again.
• The employee will now disappear from any remaining payroll periods.

See also

• How do I Close a Payroll Period?
• How do I enter a Payroll leaver?
• How do I Close a Payroll Period?
• How do I Run a Payroll Period?
• Troubleshooting Payroll RTI Submission Errors
• How do I Add a New Employee to the Payroll?
• How do I Delete a Payroll Period?
• What should I do if I Submitted Incorrect P45 Details Online?
• How do I Set up Platinum for Online P45 Submission?
• How do I Reprint a P45?
• How do I Reverse a Payroll Leaver?

Feedback

Thank you for using our Knowledge Base, we value your feedback. Did you find this article useful? 'Yes' or 'No'

Keywords AND Misspellings

redundancy, redundant, pay