How do I deal with redundancy in the payroll?
From Catalyst
(Redirected from How do I Handle Redundancy in the Payroll?)
Summary
The following article explains how to post redundancy on your payroll system.
 | 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).
- Mark the Payroll User as a leaver How do I add a payroll leaver?
- Close the payroll period as normal.
- 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 add a payroll leaver?
- Troubleshooting payroll RTI submission errors
- How do I create an employee in the payroll?
- How do I remove a payroll period?
- How do I reverse a payroll leaver?
