We have laid off a few employees and im just wondering the correct procedure for entering this onto sage payroll? Do i put the employees on hold or do i just enter their payments as 0 although they would get a tax refund?
I agree with Steve. If they have been laid off with no prospect of being re-employed then you should process them as leavers, give each a P45. Don't forget any outstanding holiday pay.
Are you paying them lay off pay with the intention of them coming back to work when business picks up? If so then you can't treat them as a leaver. Im replying on my phone so can't insert a link to lay off pay but look on hmrc website
We have laid them off with the intention of seeing how business goes in the next month, hopefully picking up a work contract soon. Most of the employees are long term who would be entitled to redunancy in a few weeks if we can no longer supply work for them.
I don't think I can process them as a leaver in these circumstances.
Any help would be great thank you
This link may help you out. It seems it depends on their contract, but it seems that most employees who are temporarily laid off are entitled to full pay.
