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The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> Ex-Employee Bonus
Post Info TOPIC: Ex-Employee Bonus
buckland10


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Ex-Employee Bonus
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Hi,

an employee left the company at the beginning of October and is now due a bonus.  As he is now not active on our payroll system and has received his P45, how do I run his bonus through payroll?

Regards...



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Tom McClelland


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You should pay him the bonus using tax code 0T non-cumulative (ie W1 or M1) and use the weekly NI tables regardless of his normal payment frequency.

Those figures should be included in your year-end P14 for the employee.

Send your tax office a letter stating that you've made the employee an additional payment of the bonus amount, and stating the tax deducted.

Do not issue a replacement P45.



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buckland10


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Fantastic. Clear as a bell - thanks.

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RobRJBS


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Is the employee entitled to the bonus if they are no longer in employment. By leaving employments have they not given up their right to further remuneration?

Ultimately it will be down to the employers own view with reference to any contract.



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Rob Director R & J Business Solutions (www.rjbusinesssolutions.co.uk) @RobRJBS
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