I have 2 employees that have left and have already received their P45's but are due holiday pay. I understand that I have to write to the tax office and give them details of the extra payment.
I am now trying to process the payroll and holiday pay accrued - I am using Moneysoft Payroll Manager - do I need to add the employees back in as starters and process the payroll? I don't know how else I can keep things straight in the software and so that the employees left can get a payslip with their holiday pay.
Thanks in advance for any help on this
Rachel
I've managed to sort this out now, quick call to HMRC and actually reading the Moneysoft instructions!
-- Edited by rachel_mclean on Tuesday 23rd of February 2016 11:40:07 AM
No need to start them again Rachel. Set the tax code to 0T and make a payment in the current week/month. It'll be greyed out but you double click in it. Give the employee the payslip generated.
HMRC will be informed on your next FPS so no need to write to them.
If the payment comes to more than the weekly primary threshold you will need to do a manual NI payment(s). This can be done from the adjustments tab.
(Amended as I put LEL instead of PT)
-- Edited by Leger on Tuesday 23rd of February 2016 11:39:30 AM
-- Edited by Leger on Tuesday 23rd of February 2016 11:40:24 AM
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Sorry Rachel, I should have added that the 0T should be set as W1 or M1 and the NI manual adjustment only needs doing if its a monthly payroll, as a weekly payroll sould pick up the NI payment(s) automatically.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
