At work there is a bit of a transiton happening, an employee is going to be a partner. I have been asked to stop paying him but not put him as a leaver whilst the whole thing is sorted out. If I leave a zero gross figure in sage payroll it just seems to give an automatic tax refund of £32.10, this happens with any of the employees regardless of previous earnings. There is however an option to tick a "do not pay this employee" box, this just blanks the screen, no tax refund nothing. From what I can tell it is for people on unpaid leave. Would this be the better option? I assume that this way when I process him as a leaver it will then recalculate tax etc based on the earnings to date and decide if there is a refund or not.
I think this is one of the reasons for doing a manual payroll course next
As he's going to be a partner then it'll all come out in the wash when he prepares a 12-13 tax return.
If you tick the box then the £32 will be carried forward to the next time a wage is processed for him. Either way, it isn't a significant amount and the tax suffered will be exactly the same; it's just he'll have to wait a bit longer for it.
