Issuing P45 forms in QuickBooks Online Core Payroll

Note: For information about P45 forms in QuickBooks Online Standard Payroll or Advanced Payroll, see this article.

When an employee leaves or retires from your business, there are certain steps you need to follow. Here’s what you need to do:

Step 1: Run the final payroll

Once you reach the employee’s final payroll, you’ll need to send the FPS (Full Payment Submission) to let HMRC know that you’ve paid the employee. If you’ve already paid the employee, the next FPS submission will include all the final details.

Step 2: Mark the employee as a leaver

1. Go to Payroll and select Employees (Take me there). 
2. Select the name of the employee to open the profile. 
3. Select Actions , then select Change status. 
4. From the Status dropdown ▼, select Terminated. 
5. Select the Leave date and the Reason for status change.
6. Select Save. 

The P45 form will be available once you run their last payroll.

Step 3: Give the employee their P45 form

• The P45 form closes the employment record. 
• If the employee returns, you’ll need to add them as a new employee with a new payroll ID. 
• For more help, see What to do when an employee leaves.

1. Go to Payroll and select Employees (Take me there). 
2. From the Active Employees , select Inactive Employees.
3. Select your employee. 
4. Select the Documents tab. 
5. Next to P45, select View. This will open the form in a new tab.
6. Download the form and send it to your employee.

More help

Looking for guidance on navigating QuickBooks Online Core Payroll? Check out this resource page with how-to guides to help you.