How to Process Leavers in Sage 50 Payroll

As most business owners might know, it is important to mark the employees as a leaver once they leave the company to update their final payment and Full payment submission. To do this, the user simply requires to provide the employees with a P45 and exclude them from any future payroll processing. This is quite simple to correctly process the leaver in Sage 50 Cloud payroll. In this article, we will deal with the details regarding the Process Leavers in Sage 50 Payroll.

Processing Leavers – Summary

In case the employee leaves the organization, then it is important to offer them a P45. After final payment updates have been done before FPS(Full payment submission), the user needs to mark them as a leaver. However, here are a couple of tricks that the user needs to consider before they start to process a leaver:

• Be sure to check if the employee’s final pay contains all the outstanding payments and deductions. For example: overtime payments
• In case the employee has died then in the final payments then the employee is not subject to NI or the National insurance. 
• To be able to Verify the director of the employee status has been set to the director. In case it has been, then you have to click on the check field in case the employee is leaving and it acts as their final payment check field their National insurance is calculated annually
• To make sure to check if the employee gets all the statutory payments they are entitled to. For example, if the employee receives SMP and has decided to leave during the maternity pay period and they are still liable for the statutory payment entitlement remainder.

Read More : Process Statutory Sick Pay (SSP) in Sage 50 Cloud Payroll

Mark the Employee as a Leaver and Print the P45 Sage 50

Ensure that you set the processing date to the leave date to make sure that the correct tax code is displayed on the P45. These are the steps to do so:

• Start by Locating the Payroll
• Next, select to Change the Process data
• Now modify the process date to the date on which the employee leaves
• Once done, click on OK
• Navigate to the required employee and then double-click on it
• Click on the Employment button
• Select the Leaver option
• Next, click on the Next button then fill in the employee leaving date
• Now, Click on the stationery list to hit on P45-Plain paper
• This will print the reports onto plain paper
• Click on the Preview button to verify the report details
• Click Print 
• Next, click OK
• Click select on Close 
• Next, click on the Finish tab
• Now, Select the Payroll and then select to change process date
• Next, modify the process date to the current process date.
• Click on OK
• Now the user can submit the pay period FPS. In case the user has already submitted the FDS then submit the FDS adjustment

Processing Leavers

The steps to do so are as follows:

Make a Single Employee a Leaver

• Go to the Employees tab
• Next, select the employee.
• Now Enter the employee Finish Date.
• Within the Previous Tax Details section, set the Starting Basis to This is an existing employee.
• Finally, Select Save.

Make Multiple Employees Leavers

• Go to the Employees tab
• Next, click select Bulk Actions.
• Now Select the relevant employees within the Select Item column.
• Next, Select Add finish date.
• Enter the Finish date for all of the selected employees.
• Finally, Select Save.

The USer can now process the employee’s final pay and get their P45. After you have run the next payroll, the user can not reinstate the leaver.

Get the leavers P45

The user needs to give the leaver their P45 once you have processed their final pay in the current employment.

• Start by Selecting the Employees tab.
• In case you can see the employee within the list, go to step 5.
• Or Select the Filter button.
• Nex Tick the Include employees who have left the checkbox
• Next, select Apply.
• Finally, Select the employee’s record
• Then select the Print P45 button at the top right of the page

The leaver’s Finish Date Falls before their Last Payment Run

For instance, the leaver’s finish date might be 30th September, however, you have the money to pay them in the 5th October payment run. In this case, Do not enter the finish date until after the pay run has been completed:

• Finish your pay run.
• Go to the Employees tab
• Next, select the employee.
• Now Enter the employee’s Finish Date.
• Within the Previous Tax Details section, set the Starting Basis to this is an existing employee.
• Finally, Select Save.

It is now possible to issue the employee their P45 from their employee record. HMRC will be informed about the leaver on the next payment run.

Employee leaves after the Payment Run

In case you have completed their final pay run and you have also submitted the FPS for that specific period, you need to:

• Mark the employee as a leaver and Save.
• Go back into the employee record and get their P45
• Process the next pay run as normal

Once you process the pay run, HMRC will be informed about your leave.

Employee marked as a Leaver in Error

In case you mark an employee as a leaver but have not completed a pay run, you can still reinstate their employee record. Once reinstated, they will be processed within the pay runs once again

• Go to the Employees tab
• Next, select the employee you wish to reactivate.
• Within the Employment Details, remove the date from the Finish Date box.
• Finally, Select Save.

If you have submitted your FPS to HMRC, you can not reinstate the leaver. You need to contact the professionals to reactivate the employee’s record.

Also Read : Sage 50 US Payroll & Year-End Processing

Conclusion

So, there you have it people, these are some of the aspects of Processing Leavers in Sage 50 Payroll. However, if you still have doubts regarding the same be sure to visit us at www.accountingadvice.co and you are sure to find a lot to learn from.

Frequently Asked Questions(FAQs)