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forestofmercia
Level 1

I marked an employee as a leaver at the end of the tax year but need to pay their redundancy and notice. How do I go about it?

When I go onto their profile the option to re-add them is blanked out.
Solved
Best answer April 15, 2020

Accepted Solutions
Rasa-LilaM
QuickBooks Team

I marked an employee as a leaver at the end of the tax year but need to pay their redundancy and notice. How do I go about it?

Welcome to the Online Community, forestofmercia.

 

In QuickBooks Online, you’ll no longer be able to add the employee (leaver) back to payroll once the FPS is already submitted to the HMRC. To pay the redundancy, we’ll have to set up the worker again.

 

There’s no need to enter the year to date data since its still part of the tax year. Setting up the worker’s information is a breeze.

 

Here’s how:

 

  1. Go to the Employees menu on the left panel and choose Employees to select the Add an employee button.
  2. This will open the pop-up window where you’ll have to key in the legal name of the worker.
  3. Next, tap the Add my employee menu.
  4. On the Basic info page, enter all the employee’s information and then hit Save and next.
  5. Follow the on-screen instructions to complete the process.

After adding the employee, you can now create a paycheque. For additional information about calculating the worker’s statutory redundancy pay, check out this article: Making staff redundant.

 

We'd advise confirming with HMRC that they are happy with creating the employee with a new id and what they would like you to do regarding the P45.

 

Also, the Process a leaver in QuickBooks Online Standard Payroll guide provides an overview of the tasks you’ll have to accomplish to keep the payroll records correct.

 

Let me know if you have any clarifications or questions. I’ll get back to answer them for you. Have a good one.

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3 REPLIES 3
Rasa-LilaM
QuickBooks Team

I marked an employee as a leaver at the end of the tax year but need to pay their redundancy and notice. How do I go about it?

Welcome to the Online Community, forestofmercia.

 

In QuickBooks Online, you’ll no longer be able to add the employee (leaver) back to payroll once the FPS is already submitted to the HMRC. To pay the redundancy, we’ll have to set up the worker again.

 

There’s no need to enter the year to date data since its still part of the tax year. Setting up the worker’s information is a breeze.

 

Here’s how:

 

  1. Go to the Employees menu on the left panel and choose Employees to select the Add an employee button.
  2. This will open the pop-up window where you’ll have to key in the legal name of the worker.
  3. Next, tap the Add my employee menu.
  4. On the Basic info page, enter all the employee’s information and then hit Save and next.
  5. Follow the on-screen instructions to complete the process.

After adding the employee, you can now create a paycheque. For additional information about calculating the worker’s statutory redundancy pay, check out this article: Making staff redundant.

 

We'd advise confirming with HMRC that they are happy with creating the employee with a new id and what they would like you to do regarding the P45.

 

Also, the Process a leaver in QuickBooks Online Standard Payroll guide provides an overview of the tasks you’ll have to accomplish to keep the payroll records correct.

 

Let me know if you have any clarifications or questions. I’ll get back to answer them for you. Have a good one.

forestofmercia
Level 1

I marked an employee as a leaver at the end of the tax year but need to pay their redundancy and notice. How do I go about it?

Thank you for getting back to me.

Will adding them as a new employee, paying them, then marking them as a leaver again have an effect on their p45?

AlexV
QuickBooks Team

I marked an employee as a leaver at the end of the tax year but need to pay their redundancy and notice. How do I go about it?

Good day, forestofmercia.

 

When you marked the employee as a leaver, you'll need to give the employee a P45. Once you have issued a P45 and you process another payment, including redundancy, you no longer have to issue another P45. You can check this page to learn more about what to do when an employee leaves.

 

Also, you can always reach out to our Customer Support Team if you need further assistance with payroll.

  1. Go to Help and select Contact us.
  2. Enter the word Leaver in the question field and click Let's talk.
  3. Choose either Get a callback or Chat.

I've added these articles for additional reference with QuickBooks Online Payroll:

Please comment again if you have additional questions. Wishing you all the best!

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